Over the past eight months, Worldcoin [WLD] has been in a long-term consolidation phase, with a more severe stagnation occurring over the past four months.

The price of WLD is 2.59 dollars, still far below the historical high of 11 dollars reached during the Bitcoin [BTC] bull market in March. However, optimism is starting to warm up. The market predicts that WLD may break through 4 dollars. In the past 24 hours, WLD trading volume surged by about 30%, approaching the previous resistance level of 3 dollars.

A surge in volume and price may indicate that WLD is about to break free from long-term stagnation and could mark the beginning of its recovery. Could this be the turning point investors have been waiting for?

Bullish indicators suggest untapped potential

Generally, a consolidation phase reflects a slowdown in capital inflow, with buying and selling activities remaining balanced. Therefore, increasing buying pressure is crucial to trigger a breakout.

From the daily price chart, WLD shows a clear imbalance, with selling pressure consistently exceeding buying activity, resulting in the currency price being confined within the range of 1 to 2 dollars.

From the Relative Strength Index (RSI), it can be seen that the index has been in the undervalued area, indicating untapped upside potential.

Bulls seem to be taking advantage of this opportunity, as evidenced by the surge in trading volume, pushing prices up nearly 6% in the past 24 hours.

While these bullish indicators may push WLD up to the 4 dollar range and increase volatility, they are not sufficient to drive it back to historical highs.

To achieve such a milestone, active participation from a large number of HODLers is required to maintain momentum.

Whales must intervene to balance WLD's momentum

In the past 30 days, large HODLers have mainly been in the distribution phase, with only one significant WLD withdrawal event from exchanges. The transaction amount approached 80 million tokens.

However, this activity has failed to significantly impact its price trend, indicating that extreme volatility has hindered WLD's breakthrough.

More sustained and continuous accumulation efforts may be needed to offset the current selling pressure.

Additionally, in the futures market, short positions have been dominant—this position is logical considering WLD's current market standing. But there is still a glimmer of hope: if bulls regain control, the increase in trading volume and speculative interest could lay the groundwork for a potential reversal.

The reason is simple: a slight increase in whale accumulation may disrupt the short sellers who have established strong positions in recent months, thereby preventing price increases.

If buying pressure intensifies, it could trigger a short squeeze, forcing shorts to cover. This could lead to a temporary but significant price increase.

Therefore, under the current imbalance of buying and selling pressure, a short squeeze seems to be the most likely catalyst to drive WLD out of its slump and possibly set a new historical high.

But this depends on whether the trading volume remains high and the active participation of the whales.

In short, as WLD approaches the key resistance level of 3 dollars, it has gradually become the focus of attention, and there is potential to further turn towards 4 dollars. However, looking at its historical price trends, the likelihood of a surge in the short term remains uncertain.