Worldcoin (WLD) has taken the crypto market by storm, registering a jaw-dropping 45% price gain in just 24 hours and an impressive 110% increase this week. However, as with all meteoric rises, the question arises — is a pullback on the horizon?
WLD: A Bullish Rally Signals Caution
The WLD token currently trades at $1.85, achieving a 50% rise over the last three months and boosting its yearly performance by 26% after prolonged bearish trends. While the rapid ascent has revived investor interest, signs of a potential market correction cannot be ignored. Between September 7 and 8, the percentage of WLD supply in profit spiked from 62.3% to 79.3%, suggesting that approximately 80% of holders are sitting on gains — a scenario that often triggers profit-taking activity.
Adding to this narrative, retail and short-term wallets have increased exchange balances by 2.23%, equating to an estimated $11 million in potential sell pressure. On the other hand, whales have demonstrated confidence, increasing their holdings by 630,000 WLD tokens — roughly $1.15 million in value. Despite the whale activity, net selling pressure remains dominant, totaling over $9.5 million, amplified further by smart money and top-100 wallet distributions.
Indicators Hint a Shallow Correction
Technical indicators such as the Relative Strength Index (RSI) confirm that WLD is in overbought territory – its most extreme level since early 2024. This typically foreshadows a cooling period. However, the Money Flow Index (MFI), which tracks liquidity influx versus outflows, tells a different story. MFI levels are at their highest since early 2024, signaling that buyers, particularly whales, still have the appetite to absorb price dips.
The balance between these dynamics points to a “healthy correction.” Previous market trends indicate that buyers often limit downside during pullbacks, making this consolidation phase a potential stepping stone for higher price tests.
The Golden Cross and Key Price Levels
WLD’s price action remains bullish overall, backed by strength in its moving averages. Notably, the 50-day Exponential Moving Average (EMA) is fast approaching a golden cross (a crossover above the 100-day EMA). Historically, golden crosses have been followed by extended upward trends, reinforcing the likelihood of a temporary price dip rather than a long-term reversal.
If prices fall, $1.38 emerges as critical support. Below that, $1.06 becomes a possible floor. Conversely, a daily close above $1.94 could invalidate pullback concerns, signaling an upward trajectory to fresh highs.
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