Key facts:
WLD’s tokenomics are one of the main negative points for its price.
WLD is 85% away from its all-time high, above $10.
Worldcoin (WLD) token, known for its identity verification system based on biometric data scanning, has hit its highest price in almost a month, consolidating a 20% increase over the past seven days.
This rise in its price has brought the price of WLD from $1.42 to $1.74Such growth, however, is far from its historical peak. It is still 85% below its peak of $11.82 registered six months ago.
However, WLD’s recovery has pushed it back to 79th place in terms of market capitalization, up from 93rd place just two weeks ago. WLD now has a current market cap of $792 million.
The rise in WLD price has been mainly aided by the bullish trend of bitcoin (BTC), which has boosted several altcoins.
In the following graph TradingView the behavior that WLD has had in the market throughout its history is observed.
The red line shows a strong historical resistance below $2. A resistance can be defined as an invisible barrier that the cryptocurrency has tried to break several times to the upside without success. It is due to market psychology that these levels are formed in the price of financial assets, as explained in Criptopedia (educational section of CriptoNoticias).
Although the recent surge in WLD could signal the end of its bearish correction, Short-term resilience remains a significant challenge.
Facial recognition is added to Worldcoin
Among the recent innovations that may have contributed to the price boost is the introduction of “Face Auth.”
This authentication system privately compares faces 1:1, providing added security by linking the World ID (Worldcoin’s digital passport) to user actions such as online purchases and financial transactions.
Face Auth works through a selfie taken from the user’s phone, which is compared to images stored locally on the device and securely encrypted, thus preventing the data from being stored on external servers, as explained on the Worldcoin website.
Despite these “advances”, WLD remains an inflationary tokenwhich poses a challenge to its long-term valorization. The distribution of tokens to those who scan their irises on the “Orbs” devices generates constant selling pressure, as many beneficiaries sell their rewards for fiat money, stablecoins or BTC, instead of holding WLD.
The downtrend is weakening
The trader known on social media as Captain Faibik and who has more than 90,000 followers on the social network X, suggests that the price of the WLD token is ready to experience a significant increase in the near future (medium term), possibly doubling or tripling its current value.
For this market analyst, the main trend line is weakening, which It means that the force driving the price down is decreasing.and that could indicate a change in trend.
In the chart below, the black line drawn on the chart forms a descending channel. This pattern indicates that the price has been consistently declining for an extended period. Successive highs and lows have been forming at increasingly lower levels, reinforcing the idea of a downtrend.
However, The price seems to have recently broken above the lower line of the descending channel.This breakout to the upside can be interpreted as a sign that the selling pressure that had been dominating the market may be weakening.
After the breakout, the price seems to be consolidating in a narrower range, marked by the green zone on the chart. This may be a accumulation phase before a possible more significant upward movement which could be $3.79 for the token.
