Worldcoin’s Wild Ride: Will It Soar or Sink? 🚀💸

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Ah, Worldcoin! After a week of sulking in the shadows, it has decided to stretch its legs and show some upside strength. The catalysts? Why, none other than the adoption of World ID and a sprinkle of technical momentum, of course!

In a delightful twist of fate, Worldcoin (WLD) leaped a staggering 31% to reach an intraday high of $1.63 on the morning of May 23 in Asia. This marks a jaw-dropping 180% gain from its previous lows. Who knew a little optimism could go such a long way? 😏

But wait, there’s more! WLD’s rally was accompanied by a surge in market participation, with spot volume climbing 160% to nearly $1.3 billion. Derivatives volume? A whopping 208% spike to $2.69 billion! CoinGlass data reveals that open interest also rose by 48% to $427 million. Clearly, investors are feeling quite confident, or perhaps just a tad reckless.

The main catalyst behind this jubilant rally? A fresh wave of investor interest following the news that the World Foundation has raised a cool $135 million in funding. In a rather optimistic update on May 21, the team announced that this capital would be used to expand their iris-based identity network, World ID. Because who doesn’t want their identity tied to their eyeballs? 👀

Notable crypto investors, including the illustrious Andreessen Horowitz and Bain Capital Crypto, led this funding round, purchasing Worldcoin tokens at market price. This not only added more tokens into circulation but also brought a touch of institutional credibility to the project. Because nothing says “trust me” like a bunch of suits buying in!

As if that weren’t enough, World ID is gaining traction across the globe. It has expanded into the U.S. and is making waves in Asia. Singapore leads the charge with over 100,000 users, while Japan and South Korea each welcomed more than 10,000 new users in April. Talk about a global takeover! 🌍

The network has also ventured into Southeast Asia, charming markets like Thailand, Indonesia, Malaysia, and the Philippines. Meanwhile, on-chain data shows a delightful rise in daily active addresses and accumulation from large holders, aligning perfectly with today’s price breakout. Coincidence? I think not!

Technical setup looks bullish

On the 1-day/USDT price chart, WLD recently broke out above the upper side of a rising wedge—a pattern that usually signals a bearish reversal. But in this case, the breakout has turned bullish. The token is also trading above its 50-day simple moving average and is nearing the 200-day SMA, showing some serious strength. Who knew WLD had such muscles? 💪

It has also flipped its 200-day exponential moving average into support, which is a bullish sign. Meanwhile, the MACD lines are turning up, hinting that momentum is still on the bulls’ side. Hold onto your hats, folks!

There’s even a possible Cup and Handle pattern forming on the daily chart. The cup’s bottom sits at $0.58, with the neckline around $2.50. If this pattern completes and breaks out, we might just see another leg up. Fingers crossed! 🤞

Thus, the most likely target for WLD is the $2.50 psychological resistance level, a little over 60% above current prices. If WLD breaks past this, it could trigger another buying wave and potentially aim for the 78.6% Fibonacci retracement level at $3. Because who doesn’t love a good Fibonacci sequence?

Several analysts echo a similar price target, calling for WLD to hit the $2.20–$2.50 range between June and July, provided the bullish momentum holds. But let’s not get too carried away; the Relative Strength Index is approaching overbought territory. A short-term correction or sideways action might be on the horizon. If it dips below the $1.479 200-day EMA, the next strong support lies around $0.97, which aligns with the 200-day SMA. Just a little caution, dear investors!

At press time, WLD was exchanging hands at $1.55 per coin, still trading 86.7% below its all-time high of $11.74 from March 2024. Ah, the sweet taste of potential! 🍭

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2025-05-23 11:29