The price of Worldcoin (WLD) experienced a volatile debut across mainstream cryptocurrency exchanges but has since stabilized. On July 29, the WLD price rose by nearly 6% to reach $2.35, although it remained down 70% from its market debut peak of $7.50. Currently, the token appears to be stuck within the $2–2.50 trading range, indicating a growing bias conflict in the market.
WLD is an integral part of the Worldcoin Foundation introduced by Sam Altman, the creator of OpenAI, on July 24. The token has a maximum circulation supply of 143 million, with 43 million allocated to Worldcoin’s app users through an airdrop. To receive the airdrop, users need to verify their identity using an eye-scanning physical orb and will receive 25 WLD tokens each.
The remaining 100 million tokens have been loaned to market makers outside the United States until October 2023. These market makers have the option to return the WLD tokens or purchase them for $2 plus $0.04 multiplied by the number of tokens being purchased divided by 1 million. As a result, the WLD price seems to be anchored around the $2 level, which is Worldcoin’s strategy to make the token attractive to potential users.
Kaiko Research, a data analysis firm, noted in its latest report that convincing people to scan their eyes for a token that does not yet exist can be challenging, especially if the token’s price is significantly low. Currently, the 25 WLD tokens are worth a little over $50 and are likely to remain in that range for the next three months, which seems to entice people to sign up and scan.
In terms of technical analysis, the number of Optimism wallets holding WLD tokens has significantly increased to approximately 305,000 since July 24. Meanwhile, the transfer volume of WLD has decreased during the same period, indicating that most traders prefer to hold the token rather than trade it.
Since WLD is a newly launched token, there is limited trading history to conduct a long-term price analysis. However, on a shorter timeframe chart, the Worldcoin token appears to fluctuate within an ascending channel pattern. As of June 29, the price traded near the channel’s lower trendline, aiming for a rebound towards the $2.35–2.40 range, which coincides with the upper trendline.
A close above the upper trendline could potentially fuel WLD’s rally towards the $2.50–2.56 range in the third quarter, representing a 12% increase from current levels. Conversely, breaking below the lower trendline may bring the WLD price into the $2.15–2.20 range, with a potential downside target of the $2–2.10 range, around 10% lower than the current price levels.
It is important to note that this article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
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