Crypto analytics firm Kaiko shared its predictions for Worldcoin (WLD), which has melted 70% from its peak price. Analysts say the altcoin price will be stuck at current levels for months.
Kaiko warns altcoin investors about Worldcoin
Launched by OpenAI CEO Sam Altman on July 24, Worldcoin has lost 70% from its market-first peak of $7.50. The altcoin, which made a rapid start, is subject to criticism due to technology. British authorities are currently investigating the project.
Technically speaking, WLD price rose 6% to $2.35 on July 29. It is currently cooling its momentum in the $2-2.50 region. This points to a growing conflict of bias in the market.
Kaiko analysts, who are on the subject, suggest that the price may trade at current lows for a while. According to the report dated July 27, Worldcoin’s price is stuck around the $2 level, which is a strategy to keep the altcoin attractive to potential users. The report includes the forecast that the WLD price could spend 3 months in the current range:
The value of 25 WLD tokens is currently just over $50 and will likely stay in this range for the next three months. So far, this seems to entice people to sign up and browse.
WLD could stay around $2 until October
The maximum circulating supply of Worldcoin is 143 million. 43 million were airdropped to Worldcoin’s app users. 25 WLDs are awarded to users who verify their identity using an eye-scan physical globe.
The remaining 100 million WLD was loaned to non-US market makers through October 2023. These market makers can return WLD tokens. Other than that, they have the right to sell it for $2 + ($0.04 * X). Here X is the number of altcoins purchased divided by 1 million.
What technical analysis says about the future of altcoin
According to Dune Analytics, the number of Optimism wallets holding WLD has increased to about 305,000 since July 24.
Meanwhile, WLD transfer volume fell in the same time frame. These metrics show that most traders prefer to hold.
It is currently not possible to conduct long-term price analysis for WLD as its chart is still forming. However, the short-term outlook shows that Worldcoin price is moving within an ascending channel pattern.
As of June 29, the price is trading near the lower trendline of the channel. Meanwhile, it is seeing a recovery towards the $2.35-2.40 range (marked as “resistance 1” on the chart below), which coincides with the upper trendline. A close above the upper trendline will increase the likelihood of WLD rebounding towards the $2.50-2.56 range (resistance 2), up about 12% from current price levels in the third quarter.
On the other hand, a break below the lower trendline will push WLD price towards the $2.15–$2.20 range (support 1). On a close below the lower trendline range, the price is likely to test the $2–2.10 range, down about 10% from current price levels as the next downside target. cryptocoin.comWe have included the red flags pointed out by the experts about the project in this article.
