Worldcoin continued its market recovery after a $0.2 decline. The altcoin managed to reverse $0.4, making up for losses suffered over the past few months.
However, market volatility ensued, and at press time, Worldcoin (WLD) was trading at $0.39, up 16.2% on the daily charts. Amid this high market volatility, traders have become extremely cautious.
Worldcoin Derivatives Cautious Amid Rising Liquidations
As the Worldcoin (WLD) market showed intense volatility, liquidation in the market skyrocketed. Data from CoinGlass showed that liquidation levels increased, with over $5 million liquidated.
At the same time, $3 million in short positions were liquidated while $2 million in long positions were liquidated. Rising liquidation levels have prompted traders on both sides to cover their positions to reduce the risk of liquidation.
As a result, more positions were opened. Thus, the altcoin’s open interest increased by 21% to $341 million, while volume decreased by 4%.
A decline in volume as OI increased suggested that, although new positions were being opened, market activity had declined significantly. Thus, the derivatives market saw increased demand from traders who rushed to cover their positions.
Whales remain optimistic and continue to accumulate
On the spot side, on the other hand, Worldcoin whales showed greater determination, with aggressive accumulation.
Average order size data from CryptoQuant showed large whale orders over the past week. Whales accumulated aggressively at $0.35, making this price level a solid wall.
When whale orders dominate the spot market, it suggests that wealthy traders are extremely active in the market.
In this case, these whales piled up aggressively. Looking at the Netfow Spot, this metric has remained negative for three consecutive days.
At press time, Netflow was hovering around -$3.1 million, a significant drop from -$1.3 million recorded the day before.
Negative Netflow suggests that more assets have left exchanges, a clear sign of spot accumulation. Often, a higher rate of accumulation, especially among whales, preceded better price developments.
Can the WLD rise hold this time?
As WLD sees increased demand from whales and futures traders, the altcoin’s bullish structure has strengthened significantly.
In fact, the upward volatility has intensified, with the indicator rising to 12, while the downward volatility has fallen to 8. Such a pattern indicates that a stronger directional movement is developing, with increased price fluctuations.
Usually, such a directional setup has shown a potential continuation of momentum, but also a higher risk of pullbacks.
At the same time, the altcoin’s relative strength index (RSI) climbed to 67, confirming the strength of this trend. Taken together, these two momentum indicators suggest that upside potential is currently strong and likely to continue.
Continuing the trend will see Worldcoin holding $0.4 and targeting the 200-day EMA at $0.45. However, if the altcoin does not close above $0.4, the market will move back towards $0.35.
Final summary
- Worldcoin (WLD) rose 16%, toppling $0.4 resistance before edging back amid intense market volatility.
- Worldcoin’s uptrend extended, driven by demand from positions covering a liquidation exceeding $5 million, as spot whale accumulation continued.
