Worldcoin could reverse downtrend soon

Worldcoin price shows signs of revival as it forms a higher low after seven weeks of a clear downtrend.
Multiple technical signs present a bullish proposition for a potential reversal.
The recent 27% surge in Nvidia stock price adds credence to WLD’s bullish thesis.

Worldcoin (WLD) price is setting the stage for a recovery rally. After more than two weeks of mounting bullish signs, WLD has not only formed a potential bottom but has also flashed a buy signal, hinting at what’s about to come next.

Worldcoin price likely to do a 180

Worldcoin price has been on a downtrend since setting up an all-time high (ATH) of $11.99 on March 10. Since then, WLD has produced five lower highs and lower lows. The recent swing low formed around $4.576 on April 27 is higher than the April 13 swing low of $4.422.

This higher low is the first sign of a potential turnaround for the Artificial Intelligence (AI)-based token.
The aforementioned swing lows and the peak formed between them reveal the possibility of a double-bottom setup, a technical pattern which signals a major change in trend from a prior down move. Theoretical forecasting methods suggest that a flip of the $5.620 resistance level into a support floor will confirm a breakout and the start of an uptrend.
The formation of this base above the daily support level of $4.228, which was a key hurdle between December 17 and February 16 adds credence to this development.
The next piece of evidence for why WLD could reverse is that both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) have produced higher lows. The RSI has dipped into the oversold zone and is recovering. The last time this happened was in early February, and this was followed by a 238% rally in less than two weeks. Furthermore, the AO is close to flipping above the zero line, suggesting that the bearish momentum is all but done and bulls are taking over.
These four reasons suggest that the Worldcoin price is ready for a reversal. Investors also need to consider that WLD crashed nearly 70% from its ATH, which typically happens in a bear market. So, the ongoing correction or stale market behavior indicates a short-term bear market, which could lead to another leg of the bull run.

Currently, WLD is close to breaching the declining trend line connecting the lower highs. Worldcoin price needs to flip $5.620 to confirm the start of an uptrend. Beyond this level, the AI-based altcoin will target $6.709, roughly 20% away from $5.620.

If the bullish momentum is still in place, Worldcoin price could then consolidate between $6.709 and $8.557 before deciding on a directional bias.

WLD/USDT 1-day chart

Nvidia’s role in WLD’s rally

The American technology giant Nvidia’s Graphical Processing Units (GPUs) have been crucial in the development of AI. As a result, NVDA stock price has soared nearly 500% since 2023. With the exception of the recent 22% retracement, the stock remains strong and shows signs of recovery.

In the past ten days, NVDA has bounced nearly 17% and currently trades at $877 per share. If this bullish outlook continues for Nvidia, it could catalyze another leg for AI-based altcoins, including WLD.

NVDA 1-day chart

OpenAI’s GPT-5 could impact WLD

While Nvidia’s involvement in AI technology is pivotal and could affect Worldcoin price moves, the launch of GPT-5, a new version of OpenAI’s Large Language Model (LLM), could have an even more profound impact on WLD’s market value. The reason for this connection is due to Sam Altman who is the founder of both OpenAI and Worldcoin.

So far, OpenAI has not dropped any hints or suggestions on how advanced the new LLM will be. But that has not stopped enthusiasts from speculating on rumors of what it could include. Regardless, this fundamental aspect is something that WLD investors should consider.

Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Relief wave on altcoins likely as BTC shows a $5,000 range

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