Key Takeaways
WLD has built momentum from the derivatives market as liquidity inflows rise, with heavy backing from Binance. Spot investors are also adding liquidity, with technical patterns pointing to a free rally.
In the past day, Worldcoin [WLD] has continued to lead the market in gains, posting an 11% price increase as buying activity strengthens across both the derivatives and spot markets.
AMBCrypo’s analysis of WLD’s price chart highlighted a clear path to a rally, and the growing bullish sentiment could continue to fuel upward momentum.
What is the potential trajectory of Worldcoin’s price?
Liquidity inflows remain high
Price growth in the past day was accompanied by an equally sharp liquidity surge in the derivatives market, as Open Interest rose significantly.
Open Interest, which measures the amount of unsettled derivatives contracts in the market, climbed 20% to $447 million, according to data from CoinGlass.
The $112 million increase skewed in favor of the bulls, with the long-to-short ratio in the derivatives market reaching 1.05.
Source: CoinGlass
Whenever this ratio remains above 1, it implies that buying volume in the derivatives market is greater than selling volume, signaling bullish dominance.
Further insights into the market show that Binance contributed significantly to the overall derivatives activity for WLD.
CoinGlass revealed that Binance recorded the highest Open Interest and trading volume among centralized exchanges, at $116.03 million and $228.71 million respectively—giving the exchange a trading volume ratio of 2.2.
Spot activity strengthens bullish case
Spot investors in the past day have also continued to add to the building momentum in the market.
For context, bullish acquisitions last week intensified, with a total of $8.77 million scooped from the market.
This marked a sharp turnaround from the week before, when spot purchases amounted to only $285,000 on the 25th of August.
Source: CoinGlass
The latest CoinGlass data shows that investors have started the new week with bullish momentum as well, adding another $290,000 in spot purchases.
The more notable aspect of this accumulation is the pattern associated with it. Spot investors are not only buying, but also moving their holdings into private wallets.
This habit has been linked with a long-term outlook on price, and it further reinforces the overall bullish outlook for WLD.
A move to $1.5 still within reach
Market analysis indicates that the momentum of the past day pushed WLD into a breakout rally from the bullish triangle pattern it had been trading within.
Source: TradingView
At the time of writing, WLD had already breached the resistance level of this pattern and was trending higher, potentially toward the upper boundary of the formation.
If WLD follows the fractal pattern it has broken out of, the target points toward a move to $1.5. Given the current climate in the market, the tendency for such a rally remains high.
