Worldcoin (WLD) is showing signs of potential upward movement as it approaches critical resistance levels. Currently trading at $1.26, WLD has seen a 3.50% increase in price, and traders are keenly watching its price action as it tests key support and resistance zones. This price action suggests that Worldcoin may be gearing up for a breakout, especially if the resistance levels can be breached.

The price of Worldcoin has been trading within a descending channel over the past few weeks, with significant levels forming both at the top and bottom of the range. The immediate support zone for WLD lies between $1.25 and $1.30, and if the price holds above this range, it could trigger a bullish move toward higher targets. The real test, however, lies at the resistance levels ranging between $1.35 and $1.50. If Worldcoin successfully breaks above these levels, the next targets to watch would be $1.65, $1.95, and potentially as high as $2.80, offering traders a chance for substantial gains.

Rising Active Addresses Indicate Growing Interest

One of the key factors supporting the breakout potential of Worldcoin is the significant increase in network activity. Over the past seven days, Worldcoin’s Active Addresses have surged by 45.05%, signaling growing interest in the project. Additionally, the number of new addresses on the network has risen by 106.98%, indicating a steady increase in retail participation. This increase in activity is generally a bullish signal, suggesting that more traders and investors are becoming engaged with WLD, which could support upward price movement.

Retail Investors Driving Momentum

The surge in retail activity is further highlighted by transaction statistics. Smaller transactions, particularly in the $0.00–$1.00 range, have experienced a massive 300% increase. This suggests that retail investors are positioning themselves in anticipation of a potential breakout. Despite the recent downtrend in price, retail traders seem confident in the asset’s future, with many looking to buy in as Worldcoin nears crucial resistance levels.

On the other hand, larger transactions in the $10 million–$100 million range have decreased by 64.58%, signaling a slowdown in institutional activity. This could indicate that the bigger players are taking a more cautious approach, but the strong retail participation is still a positive sign for the asset’s potential.

Short Squeeze Potential Could Accelerate Momentum

Another interesting development is the possibility of a short squeeze. Worldcoin’s Liquidation Heatmap shows a high concentration of short positions around the $1.26–$1.30 price range. If WLD continues to move upwards from this point, these short positions could be liquidated, leading to rapid price increases as the market adjusts. A short squeeze often results in further volatility, amplifying the upward momentum and pushing the price higher.

Key Levels to Watch

The price action around the $1.25–$1.30 support zone is critical for the near-term outlook of WLD. If the asset holds above this level, the probability of a breakout increases. Traders will be closely monitoring the price action as it approaches the $1.35–$1.50 resistance range. A successful breakout could set the stage for further gains, with the potential to reach price levels of $1.65, $1.95, and potentially even $2.80.

In conclusion, Worldcoin is at a pivotal point in its price action. With rising active addresses and an increase in retail investor participation, the asset shows signs of growing demand. Combined with the possibility of a short squeeze and key resistance levels in sight, WLD is poised for a potential breakout. Traders should remain alert as these critical levels are tested in the coming days.