- Price action approaches critical levels, signaling potential for a breakout toward $2.80.
- Rising active addresses and transaction stats indicate growing retail interest and market support.
Worldcoin [WLD] was trading at $1.26, up 3.50% at press time, and was at a critical point in its price action.
The price was nearing the middle of a descending channel, which could indicate a potential breakout or continued downtrend.
With key levels of support and resistance coming into play, traders are eagerly watching to see if the asset can break higher.
If the price breaks through crucial resistance levels, WLD could target prices as high as $2.80, offering the potential for significant gains.
Key levels to watch: Can WLD break its downtrend?
The price action over the last few weeks has been confined to a descending channel, with key levels forming at both the top and bottom of the range.
The immediate support was around the $1.25–$1.30 zone, and if WLD successfully holds this level, it could trigger a bullish move.
However, breaking above the $1.35–$1.50 resistance range is critical to opening the path toward higher targets. If the asset breaks through this resistance, the next levels to watch are $1.65, $1.95, and potentially $2.80.
Source: TradingView
WLD’s rising addresses suggest…
Worldcoin’s network has seen significant activity, with Active Addresses rising by 45.05% over the past seven days. Additionally, new addresses have surged by 106.98%, pointing to increased interest in the project.
This sharp increase in activity is generally a bullish signal, as it suggests growing demand for WLD.
If this momentum continues, it could support the potential for a breakout, with more traders and investors joining the network.
Source: IntoTheBlock
How are market participants reacting?
Transaction statistics provide further insight into the current market sentiment for WLD.
Despite the price downtrend, smaller transactions show significant activity, with the $0.00–$1.00 range seeing a massive 300% increase.
This indicates that smaller retail investors are becoming more active, likely positioning themselves ahead of a potential breakout.
On the other hand, larger transactions, particularly in the $10M–$100M range, have decreased by 64.58%, suggesting a slowdown in institutional activity.
Nevertheless, the strong retail participation suggests that Worldcoin may have the support it needs for upward movement if the breakout happens.
Source: IntoTheBlock
Is a short squeeze on the horizon?
WLD’s Liquidation heatmap reveals a significant amount of liquidation activity at the $1.26–$1.30 price level.
If the price continues to move upwards from here, additional short positions may be liquidated, which could trigger further price volatility.
This could result in a short squeeze, accelerating upward momentum.
Therefore, the price action around this level is crucial, and traders should be alert to any signs of rapid price changes, which could indicate the start of such a squeeze.
Source: Coinglass
Will Worldcoin break out or continue down?
Worldcoin has shown signs of potential growth as it approaches key resistance levels. The rising active addresses and retail transaction surge point to increased demand and sentiment around the project.
Additionally, the liquidation heatmap suggests that a potential short squeeze could drive further price increases.
Therefore, WLD is likely to break its downtrend and test higher levels, potentially reaching targets between $1.34 and $2.80.
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