Worldcoin is on track to launch World chain with positive sentiment around WLD.
Headwind remains intact as WLD is yet to reclaim all its lost valuation in the short term.
Worldcoin (WLD), an iris biometric crypto project has announced its roadmap for the launch of Worldchain, its highly anticipated Layer 2 solution. This move has reignited interest in WLD, the native token of the Worldcoin project with questions of further bullish movement ahead.
As Crypto News Flash had earlier detailed, Worldchain is anticipated to strengthen the Worldcoin ecosystem in addition to enhancing transaction speed, cost-effectiveness, and reliability for its users.
Worldcoin’s Resurgence
Amid anticipation of Worldchain this Summer, WLD saw its price increase by 7% in the past week. Also, Open Interest, which represents the total number of outstanding derivative contracts, has been steadily increasing alongside WLD’s recent price gains.
According to data from the analytical platform Coinalyze, Open Interest rose to approximately $50 million between April 15 to 21. This suggests that investors are confident in WLD’s upward price movement, and are willing to trade derivatives contracts to take advantage of this trend.
Furthermore, TradingView data shows the Fibonacci retracement levels had surpassed the previous swing low of $5.6. On April 13, the bullish breaker block and the fair value gap of $3.7-$4.2 were tested. WLD has increased by 52% since its low on that day.
Nonetheless, the market structure on the one-day chart was negative. The lower time frame charts suggested that the bulls needed to defend the $5.4-$5.5 range to keep their short-term bullish aspirations alive. The daily chart showed a CMF of -0.01, demonstrating that neither a considerable increase in prices nor buying pressure is expected. Similarly, the RSI maintained below neutral 50, indicating that bearish momentum was not completely cleared off.
At the time of writing, WLD is trading at $5.5, demonstrating an increase of 8.08% within the last 7 days, with its market capitalization and trading volume pegged at over $1 billion and $245 million respectively.
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Are Bullish Signals Ahead of WLD?
While it is not certain what the future holds for WLD, the recent bullish sentiment in the derivatives market, if sustained, could catalyze further price gains for the cryptocurrency. The increasing Open Interest also reflects growing interest in the token, which could lead to increased liquidity and overall adoption.
A notable bullish step for WLD would be to climb over $7.48. However, it appears there is not much such support for this at the moment. Although the announcement of Worldchain’s launch has generated some positive buzz and a small price uptick, it has not been enough to reverse the longer-term bearish sentiment around WLD.
The spot CVD experienced a modest increase from the 14th to the 17th of this month. In the four days leading up to press time, demand in the spot market declined. As a result, WLD’s short-term bullish move may fade quickly. However, the project’s success could serve as a critical moment for Ethereum’s Layer 2 solutions and their role in broader blockchain adoption.
