WLD, a cryptocurrency linked to Openai CEO Sam Altman, has skyrocketed 110% over the past week. The rally follows a recent list of upbits and growing interest over the Korean exchange from the newly established Ministry of Digital Assets Treasury.
However, this dramatic rise in demand has pushed the market into overheated territory, increasing the risk of buyer fatigue. It also suggests that WLD may be at risk of dumping some of its recent benefits.
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WLD climbs fast, but the acquired indicator may trigger a pullback
The WLD’s relative strength index (RSI) observed on the one-day chart indicates that assets are being acquired in excess. This is a sign of a short-term pullback. At pressing, this momentum indicator is at 81.77.
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The RSI indicator measures the market conditions for asset acquisitions and overselling. It ranges from 0 to 100. Values above 70 suggest that the asset is over-acquired and paid for a price drop, while values below 30 indicate that the asset is over-sold and may witness a rebound.
Therefore, WLD’s current relative strength index (RSI) reads indicate that assets are facing a potential short-term pullback or integration phase as early investors could benefit and new buyers could heal the price increase.
Additionally, open interest in token climbing futures adds to this attention. With each Coinglass, this is an all-time high of $852 million, losing 18% in the last 24 hours alone. This indicates that speculative activity is intensifying and the market may be vulnerable to sharp corrections.
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Public interest on assets measures the total number of unresolved futures contracts that have not yet been resolved, and measures market participation and trader commitment. With this surge, traders are gaining permanent positions in the market.
This could promote short-term meetings, but also increases the risk of increased volatility. If the feelings of WLD traders change, the resulting liquidation could make the market vulnerable to sharp corrections.
WLD climbs fast, but the Bears can drag the price to $1.34
The pullback at WLD’s rally could reduce the support floor at $1.59. If this level is not maintained, WLD could extend the dip and reduce it to another $1.34.
Meanwhile, as demand grows and buyers gain more strength, the price of WLD can be driven beyond $1.95 to $2.38.
