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Worldcoin Price Stabilizes After 70% Drop

WLD Price Expected to Hover Around $2 Due to Initial Supply Distribution

by coinbrit
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Worldcoin (WLD) has experienced a turbulent debut on mainstream cryptocurrency exchanges but has since stabilized. On July 29, the WLD price rose by nearly 6% to reach $2.35. However, it remains down 70% from its peak of $7.50 during its market debut. Currently, WLD is trading within the range of $2 to $2.50, suggesting conflicting market sentiments.

Anchoring WLD Price to $2 Until October:

The Worldcoin Foundation, launched by OpenAI’s Sam Altman on July 24, is behind WLD. With a maximum circulation supply of 143 million tokens, 43 million of these tokens have been airdropped to Worldcoin’s app users (25 WLD per user) upon verifying 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 can either return the WLD tokens or purchase them at a fixed price of $2 + ($0.04 * X), where X is the number of tokens being acquired divided by 1 million. This supply distribution strategy appears to anchor the WLD price around the $2 level, aiming to attract potential users.

Kaiko Research’s Insight:

Kaiko Research suggests that keeping the token’s price at around $2 makes it more enticing for users to participate in the eye-scanning verification process, especially when receiving 25 WLD tokens worth slightly over $50. This approach seems successful in encouraging sign-ups and eye scans.


Technical Analysis of Worldcoin Price:

With WLD being a newly launched token, its trading history is limited for long-term price analysis. However, on shorter timeframes, the token seems to be fluctuating within an ascending channel pattern. As of June 29, the price traded near the lower trendline of the channel, with potential for a rebound toward the $2.35–2.40 range (labeled as “Resistance 1” on the chart). Breaking above the upper trendline could lead to a potential rally toward the $2.50–2.56 range (resistance 2) in Q3, an increase of approximately 12% from current levels.


Potential Downside Scenarios:

Conversely, breaking below the lower trendline may bring the WLD price to the $2.15–2.20 range (support 1). Further downside momentum could lead to testing the $2–2.10 range as the next support, representing a decrease of around 10% from current levels.

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