In the ever-evolving world of cryptocurrency, Worldcoin (WLD) has recently faced a challenging period marked by short-term uncertainties. This mid-cap altcoin, distinguished by a substantial difference exceeding $17 billion between its market capitalization and fully diluted valuation, has experienced a significant downturn. Since achieving its all-time high (ATH) of approximately $11.74 in March 2024, Worldcoin’s value has plummeted by over 84 percent.
Worldcoin Forms Bullish Sentiment
Despite the recent struggles, a glimmer of hope has emerged for Worldcoin. After reaching a 12-month low of around $1.34, WLD has been on a path of attempted recovery over the past three months. In the daily time frame, technical indicators suggest a potential bullish reversal. Notably, an inverted double bottom pattern appears to be forming, accompanied by a rising divergence in the Relative Strength Index (RSI). This indicates an improving sentiment among traders and investors, fostering optimism for a potential price rebound.
Moreover, the WLD price has successfully retested the 50-day moving average (MA) after breaking free from a long-standing macro falling logarithmic trend. This technical achievement further supports the notion of a bullish sentiment taking shape, potentially paving the way for future gains.
On the Flip-Side
However, not all developments have been positive for Worldcoin. On-chain data analysis reveals that Alameda Research, the sister company of the FTX exchange, has been actively selling its WLD holdings over the past two months. As FTX and Alameda Research gear up to distribute up to $16 billion to their customers and creditors in stablecoins, these firms have been liquidating their crypto assets, including Worldcoin.
Specifically, Alameda Research has deposited a substantial 1.56 million WLD since August 9, executed in ten batches of approximately 143,000 coins each. Despite these sales, Alameda Research still retains a significant stash of over 23 million WLD coins, valued at more than $43 million, which are slated for future sale. This ongoing divestment poses a potential challenge to the bullish narrative.
Bigger Picture
In the grander scheme of things, the Worldcoin project continues to make remarkable strides. Currently, it boasts an impressive user base of over 6.8 million registered users on its network. Endorsed by OpenAI CEO Sam Altman, Worldcoin holds immense promise for exponential growth in the coming years.
The project’s reach extends across multiple continents, with legal registrations for Worldcoin ORBs secured in various countries, particularly in Europe, Asia, and Africa. This international expansion underscores the project’s ambition and potential to become a major player in the global cryptocurrency landscape.
In conclusion, while Worldcoin has faced significant challenges in recent times, the evolving bullish sentiment, coupled with strategic developments, hints at a potentially brighter future. As the cryptocurrency landscape continues to shift, Worldcoin’s journey remains a fascinating narrative to watch.
