Worldcoin (WLD) is poised for a potential recovery rally as it shows signs of a turnaround. Not only has it formed a potential bottom, but it has also given a buying signal, indicating what may come next. So, what levels should we be keeping an eye on for WLD in the next phase?
Worldcoin Price Increase May Be on the Horizon
After reaching its all-time high of $11.99 on March 10, the price of Worldcoin (WLD) entered a downtrend. However, recent developments suggest a potential reversal signal for this cryptocurrency.
The recent formation of higher low peaks and troughs by WLD indicates the possibility of a double bottom setup from a technical analysis perspective. This suggests that the market is heading towards a significant shift after the previous downtrend. It’s worth noting that the low formed on April 27 was higher than the previous trough, which has drawn attention.
Other Evidence Pointing to a Rise
Worldcoin has additional evidence that supports a potential reversal. Indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are producing higher lows, indicating that the market is moving out of the oversold region. A similar situation has occurred before, followed by a 238% rally. The AO moving above the zero line also suggests that the downward momentum has ended and the bulls have taken control.
With Worldcoin’s price retracing up to 70% from its all-time high, this is a typical pattern seen in bear markets. Therefore, the current correction or stagnant market movement could be a signal of a short-term bear market. As a result, recent developments could be an indication of a new bull run.
WLD Needs to Overcome This Resistance
It is currently believed that an uptrend could begin if WLD surpasses the declining trend line. However, the price needs to overcome the resistance level of $5,620 to officially confirm the start of the rise. Once above this level, the AI-based altcoin could set its sights on $6,709.
If the upward momentum continues, it is likely that the price will consolidate between $6,709 and $8,557. However, a definitive trend will need to be established by breaking out of this range. Investors should closely monitor this potential reversal and adjust their strategies accordingly based on price movements.
Nvidia’s Role in WLD’s Rise and WLD’s Future
American tech giant Nvidia, renowned for its work on Graphics Processing Units (GPUs), has played a critical role in the advancement of artificial intelligence. As a result, NVDA stock prices have experienced significant growth in recent years, with an approximate 500% increase since 2023. Although there has been a recent 22% pullback, the stock continues to display strong signs of recovery.
Over the past ten days, NVDA has seen a jump of approximately 17% and is currently trading at $877 per share. If Nvidia’s upward trajectory continues, it could also act as a catalyst for AI-based altcoins like WLD.
However, Nvidia’s impact extends beyond price increases alone. The launch of OpenAI’s new Large Language Model, GPT-5, could have an even greater influence on the future of WLD. The involvement of Sam Altman, the founder of both OpenAI and Worldcoin, is significant in this collaboration.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. It is recommended that individuals conduct their own research.