Worldcoin (WLD), a cryptocurrency in the realm of artificial intelligence, is poised for a potential comeback after a recent decline. This comes as GPU manufacturer Nvidia, a key player in AI technology, has experienced a significant drop in stock price.
Nvidia, the American tech giant known for its Graphics Processing Units (GPU) and its contributions to AI development, has seen its stock price decrease by 22% in the past six weeks. The company’s market value has fallen from around $2.37 trillion to approximately $2.0 trillion.
This downward trend has also affected AI-focused cryptocurrencies, which have undergone a harsh correction. For example, the price of Worldcoin fell by 69% between March 10 and April 13. However, recent developments indicate that WLD is ready to make a comeback.
In December, the price of Worldcoin surpassed the $2.71 mark, establishing it as a support base before embarking on a remarkable 454% rally. Despite the recent 69% drop, WLD has tested the $4.22 support base and shown potential for a recovery rally.
The descending trend line, originating from Worldcoin’s all-time high of $11.99, indicates that the downward trend is still strong. The volume profile indicator reveals high-volume nodes that align with the next resistance levels for the bulls at $6.70 and $8.55.
Ideally, the $6.70 resistance level needs to transform into a support base to boost the confidence of potential buyers and encourage more WLD purchases. However, investors should be cautious about the influence of Bitcoin on altcoins, including AI-related tokens. If Bitcoin’s price declines, WLD could drop to levels seen in early 2024, potentially falling below $3.70 before any recovery.
The Relative Strength Index (RSI) has yet to surpass the average level of 50, which could trigger a minor pullback in the Worldcoin price. This could provide patient investors with an opportunity to accumulate. The Awesome Oscillator (AO) also indicates a decline in momentum, and flipping the average level of 0 would confirm that the bulls are in control of the price.
Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
