Worldcoin Nears Apex of Symmetrical Triangle as Derivatives Activity Increases

Worldcoin Technical Analysis

• Symmetrical Triangle Formation: Worldcoin is nearing the apex of a symmetrical triangle on the 2D chart, characterized by lower highs since January and higher lows since March. This pattern indicates a balance between buyers and sellers, with decreasing volume typical of late-stage consolidations. Analysts suggest that a breakout is likely as the price action tightens within converging trendlines, with a potential upside target of $4.00 if a strong close above resistance occurs.

• Derivatives Market Activity: The derivatives market for Worldcoin has seen a significant increase in trading volume, rising over 93% to $358.56 million. Open interest has only slightly increased by 2.54% to $308.18 million, indicating that most trading activity is short-term rather than new long-term positions. The long/short ratio stands at 0.9257, showing a slight preference for shorts, but data from Binance and OKX suggests that larger traders are leaning towards long positions.

Market Sentiment and Liquidation Data

• Liquidation Trends: Recent liquidation data indicates substantial long wipeouts, with approximately $1.04 million in longs liquidated within 12 hours and an additional $1.14 million in 24 hours. This suggests a downward trend in the market. However, there has been a shift in liquidation pressure, with shorts experiencing greater losses recently, hinting at a potential market bounce.

• Future Market Dynamics: Traders are closely monitoring whether open interest will expand alongside price increases, which would validate sustained bullish positioning. Conversely, if open interest contracts during price rises, it may indicate that traders are closing long positions rather than initiating new buys. Until a breakout with confirmed volume occurs, Worldcoin's price is expected to remain within the symmetrical triangle range.