28% Surge in a Single Day! What Happened to Worldcoin (WLD)?

▲ Worldcoin (WLD)/Source: X ©

Worldcoin (WLD) surged over 28% in 24 hours amid Bitcoin's stagnation, emerging as a central player in the altcoin rotation. However, analysis suggests this rise is more attributable to market flows where funds concentrated in certain altcoins rather than Worldcoin's own positive developments.

According to the cryptocurrency market aggregator CoinMarketCap on May 26 (local time), Worldcoin recorded a 28.53% increase over the past 24 hours, reaching $0.392. Unlike Bitcoin (BTC), which moved without a clear direction during the same period, Worldcoin showed a growth rate significantly exceeding the market average as funds shifted towards some bullish altcoins.

The key background for this surge is identified as the altcoin sector rotation. As some assets like Near Protocol (NEAR) showed strength, investors quickly moved to tokens with strong recent momentum, and Worldcoin also stood out as a major gainer, recording a weekly increase of 37%. The media evaluated this price movement as a result of short-term supply and demand and a recovery in market risk appetite, rather than new fundamental changes related to Worldcoin.

A surge in trading volume also amplified the increase. Worldcoin's trading volume increased by 162.82%, surpassing $501 million. The turnover rate also reached 0.374, confirming strong liquidity. This indicates the strength of short-term buying pressure, as it was not a one-off surge in thin trading volume, but a movement accompanied by significant capital inflow.

However, the fact that the upward trend is already close to an overheated zone is a burden. The 7-day Relative Strength Index (RSI) is 68.3, approaching the overbought territory. In the market, whether it breaks the psychological resistance level of $0.40 is considered a key variable that will determine the short-term trend. If the uptrend continues, a retest of $0.40 is possible, but if trading volume sharply decreases, the rebound momentum could quickly cool down.

The key going forward is whether the altcoin rotation will continue. If Worldcoin recovers and maintains around its 7-day Simple Moving Average (SMA) of $0.422, expectations for further gains could revive. Conversely, if selling pressure increases and Bitcoin's dominance rises again, WLD could fall back to the $0.35 support level. The media assesses the current trend as a 'cautious bullish' one, analyzing that the continuation of the rally depends on the intensity of capital rotation across the entire altcoin market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*