Worldcoin (WLD) is paving the way for a potential recovery rally. After displaying signs of an upward trend for over two weeks, WLD has not only formed a potential bottom but has also provided a buying signal, indicating what may lie ahead. So, what levels should investors keep an eye on for WLD in the next phase?
Worldcoin Price Increase May Be Imminent
Following its peak at $11.99 on March 10, the price of Worldcoin (WLD) entered a downtrend. However, recent developments suggest a potential reversal for this cryptocurrency.
The recent formation of low peaks and troughs by WLD indicates the possibility of a double bottom setup from a technical analysis perspective. This could signify a significant shift in the market following the previous downtrend. It is worth noting that the low formed on April 27 was higher than the previous trough, drawing attention.
Other Indicators Pointing Towards an Upward Trend
Worldcoin presents further evidence of a potential reversal. Indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are showing higher lows, indicating that the market is moving out of the oversold region. A similar scenario has occurred before, leading to a 238% rally. The AO moving above the zero line also suggests that the downward momentum has ceased and the bulls have taken control.
With Worldcoin’s price retracing up to 70% from its all-time high (ATH), a characteristic of bear markets, the current correction or stagnant market movement could be signaling a short-term bear market. Consequently, recent developments could be heralding the start of a new bull run.
Overcoming Resistance is Crucial for WLD
Currently, it is believed that an uptrend could commence as WLD surpasses the descending trend line. However, the price must overcome the resistance level of $5,620 to officially confirm the beginning 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 Influence on WLD’s Rise and Future
American tech giant Nvidia, known for its work on Graphics Processing Units (GPUs), has played a crucial role in the advancement of artificial intelligence. As a result, NVDA stock prices have experienced a remarkable increase in recent years, with a growth of approximately 500% since 2023. Despite a recent 22% pullback, the stock continues to exhibit strong signs of recovery.
In the past ten days, NVDA has witnessed a jump of around 17%, currently trading at $877 per share. If Nvidia’s ascent persists, it could also serve 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, holds significant value in this regard.
Disclaimer:
The information presented in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies carry high volatility and inherent risks and should conduct their own research.
