World ID Passport Credential Pilot Ignites WLD Rally: A Bullish Analysis
The recent launch of World ID Passport Credential pilot by Worlcoin has sent shockwaves throughout the cryptocurrency market, resulting in a notable 19% surge in WLD’s price over the past 24 hours. As the market capitalization of WLD surpassed $2 billion, its daily trading volume skyrocketed by 122%, indicating a significant increase in investor interest. In this analysis, we will delve into the factors contributing to WLD’s impressive rally and explore the potential for further gains.
Growing Demand and Increased Open Interest
The pilot launch of World ID Credentials in select countries, including Chile, Colombia, Malaysia, and South Korea, has fueled bullish speculation among traders. The feature, currently available on iOS devices, allows users to link their NFC-enabled passports to their World ID, enabling them to claim WLD tokens without the need for the traditional in-person iris scan via the Orb. This development has led to a 21.8% increase in open interest in the WLD futures market, reaching $418.31 million, according to CoinGlass data.
Bullish Technical Patterns
The rally has also been supported by several bullish technical patterns. CryptoBull_360 pointed out that WLD has formed an ascending triangle pattern on the 4-hour price chart, a bullish reversal signal in technical analysis. A breakout above the $2.8-$3 resistance zone could result in gains exceeding 50% in the short term. Another analyst, Han Ji Ahn, highlighted a multi-month cup-and-handle pattern that could position WLD for a run-up to the $12 mark and possibly $20 in the coming months.
Trend Strength Remains Strong
The WLD/USDT 24-hour chart reveals the token trading above the upper Bollinger Band, indicating steady and strong buying activity. The Relative Strength Index (RSI) at 65 and an Average Directional Index (ADX) of 27 suggest that the bullish momentum has plenty of room to grow. This trend strength is further reinforced by the fact that Bitcoin is facing resistance at the key $100,000 level, causing investor focus to shift toward altcoins.
Potential for Further Gains
Given the current market conditions and the bullish technical patterns, it is possible that WLD could rally to $12, as suggested by several analysts. The ascending triangle pattern and the multi-month cup-and-handle pattern both indicate a strong potential for further gains. Additionally, the trend strength and the shift in investor focus toward altcoins suggest that WLD is well-positioned for continued growth.
Conclusion
The launch of World ID Passport Credential pilot has ignited a notable rally in WLD’s price, with a 19% surge over the past 24 hours. The growing demand, increased open interest, and bullish technical patterns all indicate a strong potential for further gains. As the market continues to evolve, it is essential to monitor the developments and adjust our predictions accordingly. Based on the current trends and patterns, it is possible that WLD could rally to $12 and potentially even $20 in the coming months.
Recommendation
Given the bullish analysis and the potential for further gains, investors may consider allocating a portion of their portfolio to WLD. However, it is essential to exercise caution and diversify investments to minimize risk. As with any investment, it is crucial to conduct thorough research and consider multiple factors before making an informed decision.
Key Takeaways
- WLD’s price surged 19% over the past 24 hours, reaching a 5-month high of $3.03.
- The launch of World ID Passport Credential pilot has fueled bullish speculation among traders.
- Growing demand and increased open interest have contributed to the rally.
- Bullish technical patterns, including an ascending triangle and a multi-month cup-and-handle pattern, indicate a strong potential for further gains.
- Trend strength remains strong, with the RSI at 65 and an ADX of 27.
- Bitcoin’s resistance at the key $100,000 level has caused investor focus to shift toward altcoins.
