Worldcoin [WLD] has rallied considerably in recent days. It was up 10.4% in the past 24 hours. Since making a local low of $0.226 on Sunday, the 17th of May, WLD has climbed by 23.95% in five days to trade at $0.281.
The Open Interest was up 15.4% in 24 hours and has steadily trended higher in the past five days. The Funding Rate had been negative of late, showing that market participants believed prices would continue the higher timeframe downtrend.
Their conviction was misplaced, however, and the recent price bounce has caught many participants off guard. CoinGlass data showed $571k worth of short positions were liquidated on the 21st of May as the funding rate finally shifted into positive territory.
The rising Open Interest and prevailing bearish sentiment have set up a short squeeze, based on the evidence at hand. Is this squeeze over? Here’s how Worldcoin traders can position themselves in the coming days.
The Worldcoin momentum is close to being exhausted
In March and again toward the end of April, WLD made a bearish structure break, signaling a continuation of the downtrend the altcoin has traded within since October 2025. In May, WLD has bounced from the $0.231 support level twice.
Both bounces managed to reach the $0.28 resistance level, which also marked the 50% level of the recent bearish swing move.
At the time of writing, Worldcoin was trading at $0.281. Further north, the $0.291 and $0.308 levels were likely to resolutely oppose any bullish advance.
The OBV was in a steady downtrend, showing sellers have the upper hand. Though the RSI climbed back above neutral 50 and the Stochastic RSI raced higher, the current bounce’s momentum might not be enough to yield a rally beyond the 78.6% retracement level at $0.308.
Until proven otherwise, traders can treat May’s price action as rangebound. Therefore, a sweep of the $0.288 range highs would offer a selling opportunity.
Based on the higher timeframe trend, even a bullish breakout should be treated with suspicion until the $0.329 swing high is breached.
Final Summary
- Worldcoin exhibited strong momentum in the past 24 hours and drew in a sizeable influx of speculative capital.
- The altcoin raced toward its $0.288 local highs, but the recent bounce could come to an end soon.
