Worldcoin Rallies 6.04% to $1.28 on User Growth and Accumulation

Worldcoin, the altcoin, has recently shown significant upward momentum, rallying 6.04% to reach a monthly high of $1.28. This surge comes after the altcoin faced rejection at $1.13 and retraced to $0.99. Over the past week, Worldcoin has traded within an ascending channel, indicating a strong bullish trend. As of the latest update, Worldcoin was trading at $1.245, marking a 6.04% increase over the past 24 hours.

The recent price uptick in Worldcoin is driven by a growing number of users, as indicated by the increasing on-chain activity. According to Santiment, Worldcoin’s Price DAA Divergence has held within positive territory for the past week, suggesting that the asset is not only gaining value but also seeing more active users. The number of active users increased from 500 to 826, representing an addition of 326 new active users. This organic growth in user base indicates that the price increase is sustainable and not merely speculative.

Furthermore, these new users have entered the market to accumulate Worldcoin. According to Coinalyze, Worldcoin saw $40 million in Buy Volume over the past 48 hours, reflecting the growing accumulation of addresses. This accumulation suggests that investors are confident in the long-term potential of Worldcoin and are positioning themselves accordingly.

However, the price jump has also led to an increased appetite among investors to cash out. According to CoinGlass, Spot Netflow turned positive for the first time in 30 days, with a current value of $1.20 million. This reflects higher exchange inflow and a significant dip in Worldcoin’s scarcity amid rising supply. According to Santiment, WLD’s stock-to-flow ratio declined to 599, suggesting a surge in supply available for immediate selling. Historically, such market dynamics have preceded lower prices, exerting downward pressure on Worldcoin.

Despite these challenges, Worldcoin has shown resilience and recorded sustained gains amid recovering demand and rising network usage. The altcoin started testing the Long Term Moving Average for the first time in two months. As of the latest update, the 200EMA was around $1.28, with WLD sitting slightly below it, around $1.24. Having faced rejection here over the past day, WLD must flip the 200EMA to maintain the upward movement. A decisive close above the long-term MA will set the altcoin hiking towards the $1.7 resistance. However, if Worldcoin fails to sustain this upward move, the altcoin will likely retrace and decline to $1.09.