Worldcoin (WLD) is setting the stage for a recovery rally. After showing signs of a rise for more than two weeks, WLD not only formed a potential bottom but also gave a buying signal, hinting at what might happen next. So, what levels should be watched for WLD in the next stage?
Worldcoin Price Increase May Be on the Horizon
After reaching an all-time high of $11.99 on March 10, the price of Worldcoin (WLD) entered a downtrend. However, recent developments indicate a potential reversal signal for this cryptocurrency.
The recent low peaks and troughs formed by WLD suggest the possibility of a double bottom setup from a technical analysis perspective. This could indicate that the market is moving towards a significant shift after the previous downtrend. Notably, the low formed on April 27 was higher than the previous trough, drawing attention.
Other Evidence Pointing to a Rise
Worldcoin has more evidence that it could reverse. Indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) are producing higher lows, indicating that the market is moving out of the oversold region. A similar situation occurred before, followed by a 238% rally. The AO moving above the zero line also indicates that the downward momentum has ended and the bulls have taken control.
With Worldcoin’s price retracting up to 70% from its ATH, this is typically seen in bear markets. Thus, the current correction or dull market movement could be signaling a short-term bear market. Accordingly, recent developments could be heralding a new bull run.
WLD Needs to Overcome This Resistance
Currently, it is thought that an uptrend could begin as WLD surpasses the decreasing trend line. However, the price needs to surpass the resistance level of $5,620, which would officially confirm the start of the rise. Above this level, the AI-based altcoin could set its target towards $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 according to price movements.
Nvidia’s Role in WLD’s Rise and WLD’s Future
American tech giant Nvidia, with its work on Graphics Processing Units (GPUs), has played a critical role in the development of artificial intelligence. As a result, NVDA stock prices have shown a remarkable increase in recent years, with about a 500% increase since 2023. Of course, the recent 22% pullback might have caused some concern, but the stock continues to show strong recovery signs.
In the last ten days, NVDA has experienced approximately a 17% jump, currently trading at $877 per share. If Nvidia’s rise continues, it could also be a catalyst for AI-based altcoins like WLD.
However, Nvidia’s impact is not limited to price increases alone. The launch of OpenAI’s new Large Language Model, GPT-5, could have an even greater impact on the future of WLD. The role of Sam Altman, founder of both OpenAI and Worldcoin, is significant in this interaction.
