Key takeaways
- The WLD index is down more than 3% in the past 24 hours and could fall even lower in the near term.
- Derivatives metrics remain supportive, with WLD’s open interest steadily rising alongside a moderately increasing number of long positions.
Worldcoin (WLD) fell more than 3% on Tuesday, trading below $0.50 while remaining above a set of key exponential moving averages (EMAs).
Strengthening derivatives activity and favorable technical indicators suggest that the token may have room to expand its recent rebound in the near term.
Rising open interest indicates increasing market confidence
Data from Queen Glass It shows that Worldcoin futures open interest (OI) rose to $406.86 million, compared to $377.25 million recorded on Sunday.
The gauge has been trending higher since mid-May, indicating an influx of new capital into the market.
An increase in OI is usually seen as a sign of growing trader engagement and can reinforce ongoing price trends. In the case of WLD, the rise indicates that investors are increasingly bracing for further upside.
Adding to the bullish narrative, CoinGlass data shows that the long-to-short WLD ratio has rebounded to 1.01.
A reading above 1 indicates that long positions slightly outnumber short positions, reflecting the market’s bias toward higher prices. Continued improvement in this ratio could further enhance bullish sentiment.
Despite the positive backdrop for derivatives, some warning signs have emerged. According to CryptoQuant’s market summary data, both spot and futures markets are seeing high retail participation and increasingly hot trading conditions.
The data also indicates sell-side dominance, suggesting that profit-taking activity may limit the pace of any further gains.
These factors may create headwinds in the short term even as broader sentiment remains constructive.
Worldcoin Price Forecast: Bulls defend key support levels
Worldcoin is trading near $0.509 at the time of writing, maintaining a bullish technical structure above a dense set of exponential moving averages.
The 23.6% Fibonacci retracement level near $0.504 has emerged as immediate support, and is located just below the current market price.
Meanwhile, the 50-day, 100-day, and 200-day EMA remain below the market, providing a strong support area extending from the upper band at $0.30 to the mid-$0.40 area.
Momentum indicators continue to favor buyers. The Relative Strength Index (RSI) stands near the 53 level, indicating strong upward momentum while remaining below overbought levels.
The Moving Average Convergence Divergence (MACD) indicator remains in positive territory, indicating that bullish momentum remains intact.
If the downtrend continues, immediate support is located at $0.459 (200-day EMA). A daily candle closing above this level could expose WLD to lower levels at the mid-$0.30 region near the 100-day and 50-day EMA.
However, if the rally resumes, initial resistance will be located at $0.567, with the next target at $0.676 (38.2% Fibonacci retracement).
Worldcoin’s improving derivatives metrics, rising open interest, and bullish technical setup continue to support a positive near-term outlook.
While rising retail participation and selling pressure warrant caution, maintaining support above the $0.50 area could pave the way for a move towards the $0.567 and $0.676 resistance levels in the coming sessions.
