Worldcoin is approaching an important technical point that may lead to a new wave of volatility in the market. Derivatives data shows an uptick in trading activity, indicating potential changes.
Symmetrical Triangle Formation on the 2D Chart
Analyst Butterfly notes that Worldcoin is approaching the apex of a symmetrical triangle on the 2D chart. This pattern has developed through lower highs since January and higher lows since March, reflecting a balance of pressure between buyers and sellers.
During the formation, volume has decreased, which is common with late-stage consolidations before breaking out. Price action has been squeezed tight within convergent trendlines, indicating momentum is gathering for decisive action. Each test of the rising trendline has been supported, while attempts at the descending cap have stalled without continuation.
Breakouts commonly occur between 60% and 80% of a triangle's length. With Worldcoin now within this zone, traders are watching for a strong close above resistance on expanding volume.
Derivatives Market Shows Heavy Trading Flow
Worldcoin derivatives saw turnover rise strongly, with volume increasing by more than 93% to $358.56 million. Open interest climbed only slightly by 2.54% to $308.18 million, suggesting most activity was short-term positioning rather than new commitments.
The 24-hour long/short ratio stands at 0.9257, showing marginally more shorts. However, Binance and OKX account data tell a different story, with ratios at 1.94 and 3.11 respectively. Binance top traders also leaned long, both on account level and positions, signaling that larger players are accumulating.
Liquidation Data Signals Market Reset
Liquidation data reveals heavy long wipeouts over the last 12 to 24 hours. Approximately $1.04 million in longs were liquidated at the 12-hour mark, followed by another $1.14 million at 24 hours. These moves confirm that the previous leg was downward.
More recently, liquidation pressure has shifted. In the last hour, shorts absorbed greater losses than longs, pointing to the start of a bounce. The 4-hour window still shows long-side liquidations dominating, but the transition phase suggests changing momentum.
Traders will be watching whether open interest expands alongside price gains, as this would validate sustained positioning. If open interest contracts during price increases, it would indicate closing longs instead of new buying. Until a breakout with volume confirmation occurs, price remains within its symmetrical triangle range.
