The price of Worldcoin (WLD) has declined from launch levels accompanied by a huge hype, but is currently attempting to break through an important horizontal resistance area.
In addition, the token is trading in a bullish structure, a breakout from which could trigger a rally back to the previous all-time high.
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What is Worldcoin (WLD)
The WorldCoin project was developed as a digital identity platform to distinguish real people from bots or algorithms artificial intelligence (AI) algorithms. Its primary tool, the Orb, is an iris scanning device that is supposed to confirm the uniqueness of each user’s online identity. The project was launched on July 24 and quickly passed the 2 million subscriber mark.
The main goal of the WorldCoin initiative is to create a “global financial and identity network based on proof of identity”. However, achieving this noble goal without sacrificing trust, security and user privacy is a serious challenge, with gray areas and ethical and practical concerns.
Some doubts have been raised about the project’s tokenization, as market makers control 95% of WLD.
Some doubts are raised about the tokenomics of the project, as market makers control 95% of WLD. In addition, there is an active online discussion about the potentially exploitative methods the company uses in developing countries to expand its user base.
The UK’s information control regulator (ICO) has already become concerned about WorldCoin’s eye scanning activities in London and has announced an inspection of the company. It soon became known that the German regulator had also launched an investigation against Worldcoin a long time ago.
Worldcoin has been on the rise for a long time.
WLD forecast: new all-time high or collapse?
Despite all the above concerns, the outlook for WLD remains bullish. The main reason for this is the fact that the token is trading inside an ascending triangle, which is considered a bullish pattern. Accordingly, the most likely prospect is a bullish breakout from it.
A bullish breakout from it is the most likely prospect.
If the price move after the breakout is equal to the entire height of the pattern, the price could reach the $3.20 level. This would represent a 38% increase from the current price and would allow the market to almost reach the all-time high of $3.30.
An increase of 38% from the current price and allow the market to almost reach the all-time high of $3.30.
Source: TradingView
Despite this bullish outlook, a bearish break of the rising support line would invalidate the triangle pattern. In this case, WLD could fall nearly 10% and reach the $2.10 horizontal support area.