Worldcoin [WLD] rallied by more than 13% in the past 24 hours, doubling its weekly profits to over 26%. The altcoin has been, on average, bullish over the past 30 days, with gains exceeding 50% as of press time.
The altcoin is surging amid renewed interest in AI despite a massive token unlock. Here are the bullish signals that outweighed the unlock’s selling pressure:
Why is Worldcoin rallying?
Renewed interest in AI was evident not only in Worldcoin but also in Near Protocol [NEAR], Bittensor [TAO], Injective [INJ], and Internet Computer [ICP]. They all recorded double-digit gains from a similar time scale.
The buying activity was evident in the reading of the Spot Taker CVD of the past three months. This metric had flipped green in the last two days of August, indicating buyer dominance.
Additionally, the Long/Short Ratios on Binance and OKX were all above 1.70. The Top Trader Long/Short ratios for accounts and positions are 1.93 and 2.11, indicating large players were invested.
As a result, this buying volume forced a spike in liquidation of leveraged shorts, wiping out more than $1.20 million in 12 hours. Such activity accelerated the rally. On the other hand, only $490K in long orders was liquidated.
WLD price breaks out—Is a market structure shift unfolding?
Apart from leveraged buying and short liquidations pushing WLD higher, its technical outlook was also aligned.
The altcoin broke above the $0.41-$0.45 zone, which is the most recent lower high. It was also the neckline of an inverted head-and-shoulders pattern. The breakout hinted at a potentially shifting market structure.
Therefore, WLD’s bullish target areas would be $0.55 and above the true close at $0.67. But that would only happen if bulls could keep the altcoin above the supply zone, which closes at $0.45.
However, the RSI divergence was still having a bear signal even though its reading at 67 was above the neutral level. The reading indicated the selling pressure was yet to be exhausted.
Why could this rally be a dead cat bounce?
The selling pressure still exists after the scheduled unlock of 69 million WLD tokens on the 7th of September, valued at $28 million. This amount is only a fraction of 87 million tokens set for September.
This selling pressure puts the rally at risk.
On top of that, the market structure was yet to be confirmed, as the price was ranging around $0.45.
Final Summary
- Worldcoin surges by more than 13% amid AI coins’ awakening, buying activity, and short liquidations.
- WLD’s bulls attempt to break past $0.45, which would confirm a bullish market structure shift on the daily chart.
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