Worldcoin (WLD) has staged a significant recovery, rebounding from a recent decline to $0.30 and surging 14.42% on the daily chart. The altcoin climbed 20% to a local high of $0.42, successfully defending the crucial $0.40 level before a slight retracement. At press time, WLD traded at $0.40, effectively erasing losses from the previous three days of weakness.
The rally coincided with a broader market recovery, as the total altcoin market cap reclaimed $1 billion, signaling fresh capital inflows. Bullish momentum for WLD was fueled by cooling tensions in the futures market and a recovering risk appetite among traders. Data from CoinGlass shows Open Interest (OI) rose 16.3% to $130 million, with futures recording a net inflow of $2.29 million. Notably, the Long-Short Ratio increased from 0.7 to 1.2, indicating most participants turned bullish, with investors on OKX and Binance accounting for the majority of long positions.
In the spot market, demand increased significantly. The BSVP ratio indicated seller exhaustion, with sell pressure turning negative and buy pressure jumping to 19. This shift was further evidenced by exchange activities, where over $28.29 million in WLD flowed out of exchanges in 24 hours, compared to only $27 million flowing in, highlighting a surge in market demand.
Technically, Worldcoin's Relative Strength Index (RSI) made a bullish crossover, hiking from 32 to 42, and WLD crossed its short-term 9-day moving average (9MA). These moves indicate a recovery in buying activity and stronger market demand as bulls attempt to regain control. Analysts suggest that if demand holds, WLD could target a move past its 9- and 21-day MAs at $0.45, setting the stage for a push toward $0.55. However, failure could see a retest of support around $0.34.
Despite the rally, WLD remains in a precarious position on higher timeframes. Chart analysis by Butterfly reveals the price is pressed against the lower boundary of a long-term descending channel, a level that has acted as a floor during previous dips. The WLD price is currently sitting on a critical support band between $0.396 and $0.399. A hold above this zone could trigger a quick retest of resistance at $0.414, while a breakdown could drag the price toward $0.389. The asset's performance is also closely tied to Bitcoin holding above $69,000, as WLD has been trading as a high-beta follower of broader market sentiment.
