What’s Driving Worldcoin’s [WLD] Uptrend and Can It Sustain the Momentum?

Worldcoin [WLD] has experienced a strong upswing over the past week. The altcoin has spiked from a low of $1.8 to a high of $2.8. At the time of writing, Worldcoin was trading at $2.637.

This marked a 26.20% increase on weekly charts. The bullish trend has also extended on daily charts, rising by 7.83%. Over the same period, its trading volume has surged by 145.90% to $705.1 million.

With the recent price pump, several questions arise about what’s driving it and whether Worldcoin can sustain the uptrend.

What’s driving Worldcoin’s uptrend?

According to AMBCrypto’s analysis, one factor that’s currently driving Worldcoin is increased activity among large holders. Based on IntoTheBlock data, whale activity has surged by a massive 593.3% over the past day.

This is evidenced by a rising number of large transactions that have risen from 15 to 104. When whale activity surges, it may suggest selling or even accumulation.

Since this is followed by a spike in large holder’s netflows it implies that whales are actively buying WLD.

As such, large holders’ netflow has surged from 603.68k to 6.16 million over the past day. This shows that there’s more capital inflow from whales into the asset than the outflow.

With whales turning to buying WLD, it suggests that they are bullish and expect WLD to make more gains.

Can WLD hold these gains?

Notably, increased whale accumulation indicates positive sentiments. As such, the prevailing market conditions position WLD for more gains on its price charts.

For example, Worldcoin’s Stoch has made a bullish crossover over the past day. This shows that the altcoin is experiencing a strong momentum to the upside.

Additionally, Worldcoin’s price DAA divergence has remained positive over the past seven days. This positive divergence indicates that the altcoin’s fundamentals are strengthening, with a rising number of active users and increased network adoption.

Currently, the altcoin’s MVRV Ratio is in the negative zone at -15. This suggests that WLD is still undervalued, with many holders experiencing losses.

Historically, a negative MVRV ratio presents a buying opportunity, allowing investors to acquire the asset at lower prices.

Typically, prices tend to recover from these levels as buyers enter the market, driving prices higher through increased demand.

Realistic or not, here’s WLD market cap in BTC’s terms

In conclusion, Worldcoin is enjoying positive sentiments from retail traders and whales. With bullish conditions prevailing in the market, the altcoin is positioned for further gains.

If this trend continues, WLD could reclaim $3 and attempt $3.2, where it has faced multiple rejections. Conversely, a trend reversal could see a drop to $2.3.