Worldcoin (WLD) is poised for a potential recovery rally, signaling a shift in its market dynamics. After experiencing a downtrend following its all-time high of $11.99 on March 10, recent developments suggest a potential reversal for this cryptocurrency.
From a technical analysis perspective, the recent formation of higher low peaks and troughs indicates the possibility of a double bottom setup. This suggests that the market could be on the verge of a significant shift after the previous downtrend. The attention is drawn to the fact that the low formed on April 27 was higher than the previous trough, further supporting this potential reversal.
Additional evidence points to a rise in Worldcoin. Indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are producing higher lows, indicating a move out of the oversold region. A similar situation in the past led to a 238% rally. The AO moving above the zero line also suggests that the downward momentum has ended and the bulls have taken control.
Despite the current correction or dull market movement, which is commonly seen in bear markets, the significant retracement of up to 70% from its all-time high could be signaling a short-term bear market. Therefore, recent developments may be the heralding of a new bull run.
For the uptrend to commence, Worldcoin needs to surpass the resistance level of $5,620. This breakthrough would confirm the start of the rise, with a potential target of $6,709 for the AI-based altcoin. If the upward momentum continues, the price is likely to consolidate between $6,709 and $8,557. However, a definitive trend will only be established by breaking out of this range. Investors should closely monitor this potential reversal and adjust their strategies accordingly.
The role of American tech giant Nvidia in Worldcoin’s rise and the future of WLD cannot be overlooked. Nvidia’s work on Graphics Processing Units (GPUs) has been instrumental in the development of artificial intelligence. This has led to a remarkable increase in the stock prices of NVDA, with a 500% rise since 2023. Despite a recent 22% pullback, the stock continues to show strong signs of recovery.
In the last ten days, NVDA has experienced a significant jump of approximately 17%, currently trading at $877 per share. If Nvidia’s rise continues, it could serve as a catalyst for AI-based altcoins like WLD.
Moreover, Nvidia’s impact goes beyond price increases. The launch of OpenAI’s new Large Language Model, GPT-5, could have a substantial influence on the future of Worldcoin. The involvement of Sam Altman, the founder of both OpenAI and Worldcoin, adds further significance to this interaction.
Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
