Worldcoin (WLD) Price Tied-Up With Meme Coins Amid Mixed Signals

4 months ago 1

ARTICLE AD BOX

While Bitcoin and Ethereum often lead the broader market direction, Worldcoin (WLD) prefers to align with two cryptocurrencies that were outstanding during the 2021 bull market. At the top of the list is Shiba Inu (SHIB).

The other is another memecoin struggling to replicate the performance that pushed it into the limelight. As of this writing, WLD’s price trades at $3.04, representing an 8.58% increase in the last 24 hours.

Token Chooses SHIB and DOGE, Gives Good Tip-Off

Over the past few months, the Worldcoin project has faced regulatory heat from several countries due to skepticism about the safety of its WorldID orb verification.

But if on-chain fundamentals are anything to go by, WLD’s price may begin to move in the direction investors desire. Also, its correlation with DOGE and Shiba Inu (SHIB) prices can influence the potential price action.

According to IntoTheBlock, WLD’s correlation with DOGE is 0.95. With SHIB, it is 0.97. This is much higher than the correlation with BTC and ETH, which are 0.79 and 0.90, respectively.

Correlation values range from -1 to +1. When the reading is close to +1, it means that two cryptocurrency prices move in a similar direction in most cases. On the other hand, a reading near -1 implies a divergence in direction.

But what does Worldcoin’s short to mid-term outlook suggest? Employing data from Santiment, we noticed that the Stock-to-Flow ratio spiked. The ratio tells if an asset is getting scarce or if the supply is increasing. A high Stock-to-Flow ratio is considered a positive factor in a cryptocurrency’s value.

On the other hand, a low reading of the metric puts the value at risk of falling below major thresholds. Therefore, the recent surge increases the chances of WLD’s continued price appreciation.

WLD Price Prediction: Breakout Imminent?

The daily chart shows that WLD trades below the 20 EMA (blue). EMA stands for Exponential Moving Average. This technical indicator tracks changes in an asset’s price trend. When the EMA slopes below the price and moves upward, it indicates a bullish trend.

However, if the EMA is above the price and faces south like the 20 EMA is, it hints at a bearish trend. Furthermore, the 50 EMA (yellow) crossed over the 20 EMA since April 12. Since then, a bullish crossover has yet to neutralize the position.

Known as a death cross, anytime the longer EMA crosses above the shorter one, the price falls. Evidence of this is reflected in the descending channel shown above. A descending channel indicates a downward trend in the price of a cryptocurrency.

In this pattern, the upper trendline taps resistance points while the lower one hits support levels. If the trend continues, WLD’s price may drop to $2.40. However, this pattern can be tricky sometimes, as it can also be the prerequisite for an upward breakout, which may send Worldcoin to the upper resistance at $4.90

Therefore, it is important to consult other indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).

The MACD uses moving averages to determine whether the trend is bullish or bearish. A cross below the zero signal line indicates a bearish trend, while a reading above it suggests a bullish one. At press time, the indicator on the WLD/USD chart shows a bearish trend.

The RSI measures momentum, with values over 70 being overbought and below 30 — oversold. At 29.21, WLD is oversold, indicating that the price may begin to reverse to the upside, with targets starting from $3.63.

Summary and Conclusions

It is worth noting that certain factors can hinder WLD’s bullish thesis. For example, if the prices of SHIB and DOGE plunge, WLD’s price may face another decline and possibly nosedive to $2.25.

Outside the on-chain environment, sanctions from other nations, despite calls for the project’s return in regions where it is banned, can severely affect it. However, on June 19, Worldcoin disclosed that it is expanding its WorldID orb verification to Ecuador.

On the bullish side, a positive development in the Artificial Intelligence (AI) sector can trigger an upswing for the token. For example, the market cap of AI firm NVIDAI recently surpassed $3 trillion. Shortly after the report, prices of AI-themed tokens, including WLD, increased.

Should a similar event occur, Worldcoin may be part of the cryptocurrency that continues to gain. The altcoin season is another factor that can positively impact WLD’s price. It is a market cycle where non-BTC cryptocurrencies outperform the number one coin.

For this to be validated, at least 75% of the top 50 coins must outperform Bitcoin. While that has not happened yet, leveraging other forms of data available on the blockchain can help determine if the token will show readiness to move in a specific direction.

The post Worldcoin (WLD) Price Tied-Up With Meme Coins Amid Mixed Signals appeared first on BeInCrypto.

Read Entire Article