Worldcoin (WLD), a cryptocurrency in the realm of artificial intelligence, is showing signs of a potential comeback after a period of decline. This comes at a time when popular GPU manufacturer Nvidia has experienced a sharp decline in its stock price.
Nvidia, an American tech giant known for producing Graphics Processing Units (GPU) and driving the development of AI technology, has seen its stock price drop by 22% over the past six weeks. This has resulted in a decrease in Nvidia’s market value from around $2.37 trillion to approximately $2.0 trillion.
The downward trend in Nvidia’s stock price has also affected AI-focused cryptocurrencies, leading to a significant correction. For example, the price of Worldcoin fell by 69% between March 10 and April 13. However, recent developments suggest that Worldcoin is poised for a comeback.
In December, Worldcoin surpassed the $2.71 barrier, which then became a support base for the cryptocurrency. This led to a rally of 454%. Despite the recent 69% decline, Worldcoin has retested the $4.22 support base and experienced a small increase, indicating the potential for a recovery rally.
The descending trend line, starting from Worldcoin’s all-time high of $11.99, indicates that the downward trend is still strong. The high-volume nodes of the volume profile indicator align with the next resistance levels at $6.70 and $8.55, which are the targets for the bulls.
It is important for the $6.70 resistance level to transform into a support base in order to boost the confidence of potential buyers and encourage more purchases of Worldcoin. However, investors should be cautious of the impact of Bitcoin on altcoins, including AI-related tokens. A decline in Bitcoin’s price could cause Worldcoin to drop to levels seen at the beginning of 2024, potentially falling below $3.70 before any rise.
The Relative Strength Index (RSI) has not yet crossed the average level of 50, which could lead to a minor pullback in the price of Worldcoin. This could present an opportunity for patient investors to accumulate more tokens. The Awesome Oscillator (AO) also indicates a decline in momentum, and crossing the average level of 0 would confirm that the bulls are in control of the price.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
