Worldcoin (WLD) shot up 22% over the past 24 hours, breaking out of a prolonged descending channel that had kept the token under pressure for weeks. The move came as traders ramped up bullish bets in derivatives markets, even as on-chain data showed coins continuing to flow out of exchanges — a pattern often associated with accumulation rather than selling.
Break from the descending channel
The token had been grinding lower inside a downward sloping channel since mid-February, repeatedly failing to hold above resistance. That changed in Wednesday’s session when WLD punched through the upper boundary on above-average volume. Technical analysts look for such breakouts as potential reversal signals, especially when accompanied by rising buying pressure.
Worldcoin’s price now sits near $2.10, a level that had acted as support in early March. The next resistance zone lies around $2.35, where the token stalled earlier this month.
Derivatives market turns bullish
Open interest in WLD futures and perpetual swaps climbed sharply during the rally, indicating fresh capital entering the market rather than just short covering. Funding rates, which measure the cost of holding long positions, turned positive for the first time in days. That suggests derivatives traders are betting the uptrend has legs.
Liquidations data shows relatively few shorts were caught off guard — most of the positioning appears to be new longs added in anticipation of further gains. The ratio of long to short contracts on major exchanges tilted heavily in favor of bulls.
Exchange outflows persist
Despite the surge, WLD continues to leave exchange wallets at a steady clip. Net outflows have been negative for seven straight days, meaning more tokens are being withdrawn than deposited. That trend often signals that holders are moving coins into cold storage or into decentralized finance protocols for yield, reducing the supply available for immediate sale.
Some market participants see the combination of rising price and falling exchange balances as a constructive sign. If the outflow persists while demand stays elevated, the token could face a supply squeeze that accelerates the rally.
The question now is whether the breakout can hold above the channel and attract enough volume to test the February highs near $2.80. A failure to stay above $2.00 would put the breakout in doubt and could draw bears back into the market.
