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On May 21, Worldcoin announced an investment of $135 million, led by venture capital firms a16z and Bain Capital Crypto, through a direct purchase of its WLD tokens. This triggered a strong buying momentum in the entire market, pushing the WLD token price to a three-month high of $1.64 on Thursday.
Although WLD has since experienced a slight correction, with a trading price of $1.53 at the time of writing, bullish sentiment remains strong. The momentum oscillation indicator readings on the daily chart confirm this.
As of the time of writing, the momentum indicator is flashing green, with the histogram showing a value of 0.195. This is the second consecutive day the momentum indicator has shown positive values following seven days of red histograms.
The momentum oscillation indicator compares the current market momentum of the asset with its long-term momentum, helping to identify potential trend reversals. When it shows green histogram bars and positive values, it indicates strong current momentum and increasing bullish sentiment.
This suggests that the price of WLD may continue to rise, providing potential buying opportunities for market participants.
Moreover, the daily trading volume of WLD continues to soar, indicating that its price surge is supported by actual token demand rather than speculative trading activities. As of this writing, the trading volume of this altcoin has increased by 159%, exceeding $1 billion.
When both the price and trading volume of an asset rise simultaneously, it indicates strong market interest and increased demand. This trend suggests that the momentum behind the price rise of WLD tokens stems from firm belief rather than short-term speculation.
The breakthrough of WLD may lead to a new high in prices in January.
The double-digit rise of WLD has pushed its price above the resistance level of $1.42, making it a support level. If demand rebounds and the lower price limit strengthens, this altcoin may continue its upward trend, aiming for the $1.95 high set on January 27.
Conclusion
In summary, the recent institutional support for Worldcoin’s WLD token and the rise in trading volume suggest a strong bullish trend. However, we should also be wary of potential profit-taking, as this could alter the trend. Closely monitoring whether WLD can maintain the $1.42 support level is crucial for assessing its near-term outlook.
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