Worldcoin remains stagnant following a 70% decline from its highest point — Is further decline anticipated for WLD value?

The value of Worldcoin (WLD) has settled following a tumultuous introduction on major cryptocurrency exchanges.

On July 29, the WLD price increased by nearly 6% to $2.35. However, the token remains down 70% from its initial market peak of $7.50.

Currently, it seems to be confined within the $2–2.50 trading range, indicating a growing conflict of bias in the market.

WLD/USD daily price chart. Source: TradingView

WLD may remain around $2 until October

Importantly, WLD is part of the Worldcoin Foundation, which was established by OpenAI’s Sam Altman on July 24.

The token has a total circulation supply of 143 million, with 43 million allocated to Worldcoin’s app users through an airdrop — 25 WLD per user — contingent upon identity verification via an eye-scanning physical orb.

Worldcoin circulating supply as of July 29, 2023. Source: Dune Analytics

The remaining 100 million tokens have been lent to market makers outside the United States until October 2023. These market makers have the option to return the WLD tokens or purchase them for $2 + ($0.04 * X) — where X represents the number of tokens being acquired divided by 1 million.

Consequently, the WLD price seems to be anchored around the $2 mark, which, according to Kaiko Research, may be Worldcoin’s strategy to maintain the token’s appeal for prospective users.

“Encouraging individuals to scan their eyes for 25 units of a token that is not yet available can be difficult; if the token’s price is, for instance, $0.10, it becomes even more challenging,” the data analysis firm noted in its recent report, adding:

“The 25 WLD tokens are currently valued at just over $50 and are likely to remain in that range for the next three months. Thus far, this seems to be motivating individuals to register and scan.”

Worldcoin price technical analysis

The total number of Optimism wallets holding WLD tokens has surged to nearly 305,000 since July 24, according to Dune Analytics.

Optimism wallets holding WLD. Source: Dune Analytics

In contrast, WLD transfer volume has decreased during the same period. These indicators suggest that most traders have opted to retain the token.

WLD transfer volume since. Source: Dune Analytics

As a newly introduced token, WLD lacks sufficient trading history for a comprehensive long-term price analysis. However, on a shorter timeframe chart, the Worldcoin token appears to be moving within an ascending channel pattern.

WLD/USD hourly price chart. Source: TradingView

As of June 29, the price was trading near the channel’s lower trendline while aiming for a rebound toward the $2.35–2.40 range (designated as “resistance 1” in the chart above), which aligns with the upper trendline.

Related: Worldcoin is making reality look a lot like Black Mirror

A close above the upper trendline may enhance WLD’s chances of advancing further toward the $2.50–2.56 range (resistance 2) in Q3, representing an increase of approximately 12% from current price levels.

Conversely, a break below the lower trendline could result in the WLD price entering the $2.15–2.20 range (support 1). A close beneath the lower trendline range could lead the price to test the $2–2.10 range as its next downside target, down roughly 10% from current price levels.

This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a decision.