The market is skeptical about the future of Worldcoin.
At a regulatory level, the organization continues to have problems in several countries.
The world token (WLD), of the eponymous digital identity protocol that until last month was called Worldcoin, was slightly favored this week by the bullish sentiment that dominated the cryptocurrency market.
Motivated by the rise of bitcoin (BTC) to a new all-time high after Donald Trump’s victory in the United States elections, the price of WLD — which had fallen to $1.59 (USD) on November 4 — rose to slightly exceed USD 2 on November 6. It then fell to around $1.9, showing a 15% rise from that low.
In any case, if the last 7 days until the time of this publication are taken into account, the net increase was less than 1%, as seen in the following graph.
This performance is significantly lower than that of other crypto assets that appreciated more than 50% in the weekas reported by CriptoNoticias. This situation shows that $2 is working as a strong resistance for WLD price.
a resistance It is a temporary zone of maximum prices due to the greater supply than demand found there. Although this is not inherent only to round figures, it frequently occurs at such levels due to the psychology of traders. That is why it is not surprising that this has occurred in the USD 2 range.
Furthermore, the area around USD 2 It has also functioned as resistance for WLD a little over a month ago. The market tends to repeat strong psychological barriers from the past, so it makes sense that the current rally has stopped here for now.
If demand strengthens, it is possible that this level, which can be seen in the following chart, will become support. This term refers to a temporary zone of minimum prices due to greater buying strength than selling.
Last month, during a small uptrend for the token, the market turned resistance at $2 into support. Due to market psychology, it is normal for such a conversion to occur during times of bullish sentiment. Additionally, that is strengthened by the move to a new figure leaving the $1 range behind.
In such a rise, the Worldcoin project asset reached $2.6, as seen below. Therefore, according to the technical analysis of supports and resistances, this level could work again at most in case the rebound is reactivated.
Continuing with this analysis, It is expected that the next resistance level it encounters, if it exceeds this objective, is around USD 3.2. This would imply a 60% rise from its current price, which would represent a substantial profit margin.
However, it is key to keep in mind that trading this asset is high risk, due to the challenges that the project behind WLD is going through. Therefore, its traders should consider a contingency plan when trading this asset to avoid unwanted losses in case its price declines.
One possible option is to establish a stop loss (automatic sale) below the purchase price to avoid large losses if its price declines. Although, many of its investors do not acquire this asset by purchasing it, but by scanning the iris.
WLD is experiencing difficulties in climbing
Precisely, the World ecosystem (ex Worldcoin) offers WLD tokens to those who scan their eye iris. The reason for this is that the project seeks to be “a network of real, verified humans to enable an optimistic future in which humans will continue to be at the center of artificial intelligence progress.”
With different stands around the world that allow scanning the iris to receive WLD, this project has received heavy criticism for its collection of identity data. This has even led to its activity being prohibited in different countries such as Spain.
Therefore, as long as the global outlook on this project does not improve, it is difficult for its price to have a sustained upward trend. In addition, many scan their irises in exchange for the token to sell it and make profits without having spent to buy it, something that makes its appreciation difficult.
WLD is currently trading 83% below its all-time high, which was USD 11.8 in March 2024. This reflects a wide contrast with other crypto assets that are close to their record or have recently set a new one, such as bitcoin. .
Anyway, With Trump’s victory in the United States elections, a boom is expected for cryptocurrencies. The Republican plans to convert the economic power into a center for industry that does not hinder its development.
Because the United States usually sets the global agenda, this could be positive for WLD, as long as such a scenario occurs and expectations about its project improve.
