Key Takeaways
- Worldcoin surged following news that a16z and Bain Capital Crypto had directly purchased $135 million in fresh funding via token purchases.
- The capital raise was not discounted or locked, but a direct market buy, boosting circulating supply and price momentum.
- Trading volume nearly doubled from $250 million to $500 million, confirming the strength behind the uptrend.
- If Worldcoin’s price clears $1.35 and breaches the 0.618 Fibonacci level, a move toward $2 is possible.
Worldcoin (WLD) has posted seven straight green candlesticks on the 4-hour chart since Wednesday, May 21, pushing its price up by 15% in the last 24 hours.
The rally followed news of fresh funding for the Sam Altman-backed project, sparking renewed bullish sentiment. Technical indicators now suggest WLD may have more room to climb.
Here’s a breakdown of the recent development and what could be next for Worldcoin’s price.
Worldcoin Breaks Bearish Structure
During the intraday trading hours on Wednesday, the World Foundation, the non-profit arm of Worldcoin, disclosed that it had raised $135 million. According to the official statement, the fund ai16z and Bain Capital Crypto led this funding round.
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It also mentioned that the new capital would ensure the project accelerates its mission to scale the real human network. In addition, via its X page, World mentioned that the funding came through a direct purchase of WLD.
“The funding comes from two of World’s earliest backers and long-term holders — a16z and Bain Capital Crypto. This wasn’t a venture round. It was a direct purchase of non-discounted liquid tokens. The circulating supply of WLD has thus increased correspondingly,” It stated .
Due to this, Worldcoin’s price experienced upward pressure. On the 4-hour chart, the surge also helped the altcoin break above the upper trendline of a descending triangle with WLD at $1.27.
Besides that, the Awesome Oscillator (AO) reading has risen to the positive region, indicating bullish momentum. In addition, CCN also examined the Bull Bear Power (BBP).
The BBP measures the strength of bulls (buyers) compared to that of bears (sellers). When the BBP reading is positive, bulls are in control.
On the other hand, when the indicator is negative, bears are dominant. Since it is the former, Worldcoin’s price is likely to increase.
Beyond the price surge, WLD’s volume also spiked. In the early hours of yesterday, the volume was less than $250 million. Today, the same metric is close to $500 million.
From a trading point of view, the rise in volume adds strength to the upside. Therefore, if the trend continues, Worldcoin’s price could climb.
WLD Price Analysis: Bullish
The daily WLD/USD chart, the Relative Strength Index (RSI) bounced off the neutral line. Failure to drop below the signal line indicates bullish momentum around the cryptocurrency.
Additionally, the green line of the Supertrend indicator is positioned below Worldcoin’s price. This indicates strong support and could help resist another drawdown.
WLD’s price might break the resistance at $1.35 if this trend holds. Once it breaches the 0.618 golden ratio, the altcoin’s next target could be $2.
However, if WLD experiences a rise in tokens sent to exchanges, this prediction might not happen. If that were to happen, WLD might face selling pressure, and the cryptocurrency’s price might fall below $1.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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