- Worldcoin price retreated for four consecutive days as traders booked profits.
- WLD token has become a major proxy to OpenAI, the creator of ChatGPT.
- Technicals suggest that the Worldcoin token will bounce back.
Worldcoin price retreated for four consecutive days, moving from this month’s high of $0.7235 to the current $0.5982. This retreat happened as investors booked profits after it emerged as one of the best-performing tokens in the cryptocurrency industry. At its peak, it was up by 210% from its lowest level this year.
Worldcoin Has Become an OpenAI Proxy
The recent WLD price surge happened because it has become a key proxy for OpenAI, one of the biggest players in the artificial intelligence (AI) industry. OpenAI has already filed to go public, a move that will value it at over $1 trillion.
One person: Sam Altman established Worldcoin and OpenAI. Altman now serves as the head of OpenAI and is one of the most influential people in the technology industry today.
It is common for related assets to jump ahead of major events. For example, we saw many space stocks, such as Planet Labs, Rocket Labs, and Intuitive Machines, surge ahead of the SpaceX IPO. This jump happened because of the narrative surrounding the space industry.
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Another potential reason for the rally is hope that OpenAI will use Worldcoin’s biometric identification, commonly known as World ID. It is already exploring how to use the technology to combat online bots and verify that users are real humans.
If this happens, OpenAI will join other companies like Shopify, Okta, and DocuSign that are using the technology. It would be a big move as ChatGPT, its main product, has attracted over 1 billion users a week.
In other unrelated news, the WLD token price jumped ahead of the upcoming token revamp, which will reduce daily emissions by 43% in July. By doing so, the network aims to improve its tokenomics and boost its price over time.
The ongoing retreat is mostly due to profit-taking among investors and to a decline in futures open interest. They dropped to $455 million from the year-to-date high of $581 million. Also, the weighted funding rate has fallen below zero.
Worldcoin Price Prediction
The daily chart shows that the WLD price has pulled back in the past few days, moving from a high of $0.7235 to $0.6030 today. This retreat happened after the coin formed a morning star candlestick pattern on June 17.
On the positive side, this retreat seems like a mere pullback and not the start of a bear market. It is also part of the formation of a higher high and a higher low.
Worldcoin price has remained above the 50-day Exponential Moving Average (EMA). It has also moved to the Ultimate Support of the Murrey Math Lines tool, where rebounds normally happen.
Therefore, there is a likelihood that the token will bounce back and possibly retest this month’s high of $0.7234. A move above that price will signal further gains, potentially reaching the psychological level of $1.
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