WOO surges 17% amid South Korean trading frenzy

The price of WOO has increased by 17% in the last 24 hours, making it the best-performing cryptocurrency among the 300 leading cryptocurrencies.

At press time, WOO (WOO) was changing hands at $0.2109, representing a 59% increase from its monthly low of $0.1327. The market value of the asset increased from $284.9 million recorded at the beginning of September to $385 million.

The WOO ecosystem offers a combination of centralized and decentralized financial services aimed at providing greater liquidity to cryptocurrency market participants. Its services include WOO X, a centralized exchange; WOOFi, a decentralized exchange; and Wootrade, a liquidity pool dedicated to institutional clients.

South Korean traders are driving the rally, as CoinGecko data shows that the WOO/KRW pair on Bithumb alone generated over $36.8 million in 24-hour volume. Binance ranked second with a transaction volume of 23.5 million dollars.

This led to a staggering 691% increase in daily trading volume, which currently stands at approximately $119.5 million.

Possible short squeeze approaching?

CoinGlass data shows that WOO’s open interest increased 81.4% to $20.16 million, with the increase in trading volume indicating further investor action.

WOO price, 50-day SMA and RSI – October 1 | Source: crypto.news

WOO trades above the 50-day Moving Average indicate strong bullish momentum, while the RSI above 76 indicates it has entered overbought territory. This indicates the potential for further gains but also increases the likelihood of a short-term pullback or consolidation as investors could start taking profits.

Source: CoinGlass

According to CoinGlass, critical liquidation thresholds for WOO are currently set at $0.2074 and $0.2143, with high leverage observed among intraday traders. A decline to $0.2074 could trigger $358K in long liquidations, while a rise to $0.2143 could liquidate $168.92K in short positions.

At press time, data showed that bears were dominating the market, increasing the likelihood of long position liquidations at lower price levels.

Additionally, WOO’s funding rate dropped from 0.0055% to -0.0433%, indicating that sentiment has shifted towards the bearish side. However, if the price continues to rise, this could trigger a short squeeze, pushing short sellers to cover their positions and possibly leading to higher prices.

Amid the excitement surrounding WOO among Korean traders, an X user questioned WOO X’s transparency policies and accused it of pressuring exchanges to disable the sell button for WOO tokens. The user called the move “suspicious,” arguing that the community noticed this questionable action despite WOO’s claims of openness.