- Worldcoin (WLD) has been projected to hit $5 in the short term as bullish sentiment reaches a significant level amidst the recent addition of a gas fee subsidy.
- Meanwhile, millions of WLD tokens are reported to have been transferred to various centralized exchanges, indicating a possible selling pressure.
Worldcoin (WLD) is struggling to return to its all-time-high price of $11 after plunging below a crucial support level to reach $1.9 in a massive liquidation. However, the asset seems to be taking a rebound as it prints a 6% gain on its daily price chart and 24% on its weekly price chart. Currently, WLD is trading at $2.59 with a market cap of $2.2 billion.
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Meanwhile, traders are approaching the market cautiously as Santiment data highlights the transfers of millions of WLD to various exchanges, including Binance and OKX. Explaining the potential impact, our analysts pointed out that massive exchange inflows are linked with pullbacks, as this could lead to huge selling pressure.
WLD Price Analysis
Currently, WLD has flipped the previous $2 resistance level into a crucial support zone. However, the Gaussian channel has shown a bearish signal. According to analysts, failure to hold above the current price level could cause the asset to force a bearish reversal below the $2.4 support zone. Fascinatingly, an extension of the ongoing momentum could position WLD above $2.9 and $3.05 and enter a recovery phase. Meanwhile, no serious resistance is expected beyond this level as analysts tip the asset to hit $4 or even $5 in January.
A month ago, a renowned analyst known as Yuriy predicted that the asset could be embarking on a “big move” following a Coinglass report that the Open Interest (OI) had increased from $184 million to $433 million. At that time, ADA had just witnessed its price hitting a two-year high. Repeating a similar movement, Yuriy highlighted that WLD could hit $3.5 in the short term.
Possible Catalysts for Price Growth
Delving into some of the possible catalysts, CNF discovered that the price could significantly benefit from the groundbreaking progress of its World ID project, which recently expanded to more than 40 countries. The introduction of its Orbs to these countries is expected to mitigate the high incidence of digital fraud and secure identity verification. Meanwhile, the current price surge has been linked to the recent addition of a gas fee subsidy supported by institutional user fees and bots, as mentioned by CNF in a report.
Based on the historical reaction of its price, WLD could, however, be affected by the growing regulatory concerns. Last year, multiple reports confirmed that Kenya ignored requests by the US government to lift the suspension of World activities. Authorities in Germany and Spain also subjected the project to critical scrutiny as concerns about the privacy implications of biometric data collection arose. Additionally, South Korea imposed a fine of $830,000 on the Worldcoin Foundation for personal data violations.
In December 2024, Bavaria’s data protection watchdog (BayLDA), with the support of Spain’s Data Protection Agency (AEPD), requested strict compliance with the EU’s GDPR. As featured in our coverage, Worldcoin was demanded to create a process for users to delete their data. Amidst this backdrop, the team continues to introduce new initiatives, as a CNF report recently highlighted the launch of a World ID Credential pilot.
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