Worldcoin stuck after 70% drop from peak—More downside for WLD price?

Worldcoin stuck after 70% drop from peak—More downside for WLD price?

The Stability and Strategy of Worldcoin (WLD) in the Blockchain Industry

The blockchain industry has been buzzing with the recent debut of Worldcoin (WLD) on mainstream cryptocurrency exchanges. The price of WLD experienced significant volatility, but has now stabilized within the $2-2.50 trading range. This stability hints at a growing bias conflict in the market, with investors and traders uncertain about the future direction of the token.

Worldcoin (WLD) is a part of the Worldcoin Foundation, which was launched by Sam Altman from OpenAI. The token has a maximum circulation supply of 143 million, with 43 million allocated for airdrop distribution to Worldcoin’s app users. In order to receive the airdrop, users need to verify their identity using an eye-scanning physical orb. This unique method of identity verification adds a layer of security and exclusivity to the token distribution process.

However, the remaining 100 million WLD tokens have been loaned to market makers outside the U.S. until October 2023. These market makers have the option to return the tokens or purchase them for a predetermined price formula. The formula determines the price as $2 plus a rate of $0.04 multiplied by the number of tokens being purchased divided by 1 million. This strategy has anchored the price of WLD around the $2 level and aims to make the token attractive for potential users.

Kaiko Research, a data analysis firm, noted in its recent report that the strategy of keeping the price around the $2 range seems to be enticing people to sign up and scan their eyes for the 25 WLD tokens. Convincing people to participate in a token’s launch can be challenging, especially when the token’s price is low. However, by making the tokens worth a little more than $50, the Worldcoin Foundation has successfully attracted users to sign up and verify their identity.

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In terms of technical analysis, the number of Optimism wallets holding WLD tokens has significantly increased since the launch. This indicates a growing interest and adoption of the token by users. On the other hand, the transfer volume of WLD tokens has dropped, suggesting that most traders are choosing to hold the token rather than actively trading it. This preference for holding indicates a belief in the long-term potential and value of the token.

Although Worldcoin (WLD) is a newly launched token and lacks sufficient trading history for a long-term price analysis, a shorter-timeframe chart reveals an ascending channel pattern. The price has been fluctuating within this pattern, with the lower trendline acting as a support level and the upper trendline serving as a resistance level. Currently, the price is near the lower trendline but eyeing a rebound towards the $2.35-2.40 range, which coincides with the upper trendline.

Breaking above the upper trendline could potentially propel the price of WLD towards the $2.50-2.56 range in Q3, indicating a possible 12% increase from current levels. On the other hand, breaking below the lower trendline could lead to a decline in price towards the $2-2.10 range, representing a 10% decrease in value.

Worldcoin’s stability in the $2 trading range until October, combined with its unique identity verification process and increasing adoption by Optimism wallets, positions the token in an interesting spot within the blockchain industry. The strategic pricing and focus on attracting users through airdrop distribution and eye-scanning verification showcase the innovative nature of the Worldcoin Foundation.

As the blockchain industry evolves, Worldcoin (WLD) presents an opportunity to explore new ways of token distribution and engagement with a potential user base. It will be fascinating to see how the market dynamics and user adoption of Worldcoin unfold in the coming months.