After a volatile debut in the mainstream cryptocurrency exchanges, the price of Worldcoin (WLD) has finally stabilized. On July 29, the WLD price saw a surge of nearly 6%, reaching $2.35. However, it is important to note that the token is still down 70% from its peak price of $7.50 during its market debut. The current trading range for WLD is between $2 and $2.50, indicating a growing conflict in market sentiments.
Worldcoin Foundation and WLD Distribution
Worldcoin (WLD) is part of the Worldcoin Foundation, which was launched by Sam Altman of OpenAI on July 24. The token has a maximum circulation supply of 143 million, with 43 million allocated to Worldcoin’s app users through an airdrop. To receive the airdrop of 25 WLD tokens, users need to verify their identity using an eye-scanning physical orb. The remaining 100 million tokens have been loaned to market makers outside the United States until October 2023. These market makers have the option to return the WLD tokens or purchase them for $2 plus ($0.04 * X), where X represents the number of tokens being purchased divided by 1 million.
Price Anchoring Strategy
The current stability of WLD’s price indicates a deliberate strategy employed by Worldcoin to make the token attractive to potential users. According to Kaiko Research, if the token’s price is too low, it could be challenging to convince people to undergo an eye scan for 25 units of a token that does not yet exist. By maintaining a price level around $2, Worldcoin ensures that the airdropped tokens are worth more than $50, thus providing an incentive for users to sign up and scan their eyes.
User Adoption and Trading Metrics
Since its launch, the number of Optimism wallets holding WLD tokens has increased to nearly 305,000 according to Dune Analytics. Nevertheless, the transfer volume of WLD has decreased in the same period, indicating that most traders prefer to hold the token rather than engage in active trading.
Short-Term Price Analysis
As a recently launched token, WLD still lacks sufficient trading history to conduct a long-term price analysis. However, when looking at shorter timeframes, the Worldcoin token appears to be fluctuating within an ascending channel pattern. Currently, the price is trading near the lower trendline of the channel and could potentially rebound towards the $2.35–2.40 range, which is marked as “resistance 1” in the chart. A breakthrough above the upper trendline could further boost the prospects of WLD, pushing the price towards the $2.50–2.56 range (resistance 2) in Q3, representing a 12% increase from the current levels.
Potential Downside Targets
Conversely, breaking below the lower trendline might result in the WLD price falling into the $2.15–2.20 range (support 1). If the price continues to decline, it could test the $2–2.10 range as the next downside target, representing a decrease of approximately 10% from its current levels.
Worldcoin (WLD) has stabilized its price after a turbulent market debut. Through strategic positioning and airdrops, Worldcoin aims to attract users and maintain the token’s value. Short-term price analysis suggests potential growth for WLD, but there are also possible downsides to consider. As the market evolves, it remains crucial to monitor WLD’s performance and user adoption.