Worldcoin ($WLD ) has seen a notable surge in daily trading volume, driving its price to a new monthly high of $2.55. Over the past 24 hours, WLD has gained 5%, emerging as the top performer in the market during this period.

This bullish momentum is largely driven by an uptick in smart money accumulation since the start of the year, coupled with a broader market sentiment favoring altcoins. These factors are positioning Worldcoin for potential further gains in the near term. Below, we explore the key drivers behind this rally.

Worldcoin’s Smart Money Accumulation Driving Upward Momentum

BeInCrypto’s analysis of the WLD/USD one-day chart reveals a steady increase in the token’s Smart Money Index (SMI) since the beginning of the year. Currently, the SMI stands at 1.91, reflecting a 36% increase since December 31.

The Smart Money Index tracks the activity of experienced or institutional investors by analyzing market behavior during the first and last hours of trading. A rising SMI indicates higher buying activity from these investors, signaling confidence in the asset’s future prospects. Conversely, a decline in the index suggests selling behavior, indicating bearish sentiment or expectations of price declines.

The consistent upward trend in WLD’s SMI since the start of the year is a clear indication of growing accumulation by institutional investors, which has helped fuel its current price increase. Additionally, positive readings from WLD’s price-to-daily active address (DAA) divergence further support this bullish sentiment.

Price-to-Daily Active Address (DAA) Divergence Signals Continued Accumulation

The price-to-DAA divergence metric, which tracks an asset’s price movements alongside the changes in its number of daily active addresses, currently stands at 52.73%. This positive divergence suggests that WLD’s market-wide accumulation is on the rise, further driving the token’s rally. A price rally coupled with a positive DAA divergence is typically seen as a sign of continued bullish momentum, indicating that there is growing interest in the token and potential for additional price gains.

WLD Price Prediction: Potential for Further Gains

On the daily chart, Worldcoin is currently trading below resistance at $2.67. If the bullish momentum persists, the token could break above this resistance level and aim for a target of $3.25.

However, if a wave of selloffs occurs, it could exert downward pressure on the price, pushing it towards the support level at $2.31. Should this level fail to hold, WLD’s price could experience further declines, potentially reaching as low as $2.01.

Conclusion

Worldcoin’s recent price surge is driven by strong accumulation from institutional investors and favorable market dynamics. With growing confidence in its future performance, the token has shown promising signs of continued upward momentum. While short-term fluctuations are possible, the overall outlook remains positive, and WLD could potentially target higher price levels in the near future.