Woldcoin’s (WLD) price bounced off the support floor at $1.76, rising as much as 83% to a high of $3.26 reached on July 16. With this uptick, the token has breached a long-standing descending trendline, signalling a bullish move.
On-chain data shows that WLD's daily active addresses are increasing, signalling greater blockchain usage and user interaction.
According to data from market intelligence firm Santiment's Worldcoin’s Daily Active Addresses (DAAs) have risen by 73% in the last three days. This is the highest since mid-March and indicates that demand for the network’s usage is increasing, which could propel a rally in Worldcoin's price.
Additional data from Santiment reveals that WLD tokens are leaving exchanges as per the Exchange Flow balance metric reveals that , and Supply on Exchange is decreasing, all indicating that WLD could rally in the upcoming days.
The chart below shows that WLD's Exchange Flow balance metric has slumped from -125,250 on July 13 to -426,720 on July 17, coinciding with a 56% price rise. This reduction in balance on exchanges indicates increased accumulation among investors.
At the same time, WLD Supply on Exchanges declined from 47.74 million to 42.02 million, a 12% decline, which further denotes investor confidence in WLD.
Worldcoin price is currently retesting the descending trendline, which has previously acted as resistance. This trendline has weighed down the price since it turned down from a high around $12 on March 24. The price broke above this trendline on July 16, suggesting that the downtrend might be coming to an end.
If WLD holds above the descending trendline and closes above the $3.03 level, embraced by the 50-day exponential moving average, it could rally 44% to retest its 200-day EMA support at $4.07.
In the daily chart above, the Relative Strength Index (RSI) is currently above the neutral level of 50, and the price strength at 57 suggests that the bulls are regaining control of the market.
If bulls are indeed making a comeback, the momentum indicators must maintain its positions above the middle line Such a development would add a tailwind to the recovery rally.
On the downside, if Worldcoin's price makes a daily candlestick close below $1.76, the bullish thesis would be invalidated by creating a lower low on the daily chart. This development could see WLD's price crash to retest its next daily support at $1.40, representing a 20% decline from the current price.