Worldcoin Bullish Breakout Archives

Worldcoin, the digital identity token ERC-20 project on the Ethereum (ETH) blockchain, has garnered significant attention. Its native token, WLD, emerges as the top performer among the top 100 cryptocurrencies by market capitalization.

The token has experienced a remarkable 31% uptrend in just 24 hours and a staggering 217% surge over the past fourteen days. This surge not only marks a new all-time high for WLD but also positively impacts Alameda Research, the now-bankrupt trading arm of the defunct FTX exchange, which holds a substantial stake in Worldcoin.

Alameda Research’s Stake In Worldcoin Reaches $186 Million

According to on-chain data, Alameda Research, a cryptocurrency trading firm co-founded by Sam Bankman-Fried and Tara Mac Aulay in 2017, has witnessed a surge in its Worldcoin holdings.

As WLD reached a new all-time high of $7.9788 on Monday, the trading firm’s investment in the project surged by $50 million, reaching a new record. Currently, Alameda Research holds 25 million WLD tokens, valued at $186 million, representing 33% of their total portfolio.

Worldcoin

This portfolio also includes other digital assets such as Bitcoin (BTC), BitDAO (BIT), Ethereum (ETH), Stargate Finance (STG), and the FTX token FTT.

Whale Activity And AI Hype Drive WLD’s Price Surge

Analysts such as Zameer Attar attribute the WLD price spike to strong whale activity, with one notable whale wallet withdrawing 2.09 million WLD tokens ($5.82 million) from Binance.

This withdrawal caused a 25% surge in the price of Worldcoin, resulting in the whale’s holdings reaching an impressive $8.03 million. Additionally, the launch of OpenAI Sora by Sam Altman, one of the founders of Worldcoin, has triggered bullish action in WLD tokens.

Interestingly, Sora can create videos of up to 60 seconds with highly detailed scenes, complex camera movements, and multiple characters with emotions, which surrounding the hype of artificial intelligence (AI) has spurred investor interest, leading to more bullish sentiment surrounding WLD.

Worldcoin, founded by Sam Altman, Alex Blania, and Max Novendstern, aims to revolutionize the global identity and financial network by creating a public utility known as World ID.

This privacy-preserving identity network enables users to verify their humanness online while maintaining their privacy through zero-knowledge proofs. The project has garnered significant funding, raising over $250 million across various funding rounds from investors, including a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global.

The combination of whale activity and positive market sentiment surrounding AI technologies has contributed to the considerable surge in Worldcoin’s price.

Worldcoin

Featured image from Shutterstock, chart from TradingView.com

Worldcoin Appears To Be Showing A Bullish Breakout Currently

In a new post on X, analyst Ali shared a chart for the 4-hour price of Worldcoin, which shows the formation of a bull flag for the cryptocurrency. A “bull flag” is a continuation pattern in technical analysis that, as its name suggests, looks like a flag on a pole.

Bull flags form when a rapid uptrend in the price slows down and reverses in the opposite direction while consolidating inside a specific channel. The preceding uptrend forms the “pole,” while the channel shapes up the “flag.”

There are also bear flags, which form during periods of downtrend instead. The downward trajectory naturally forms the pole in this case and the flag corresponds to the consolidation towards a slight upside.

In the context of the current discussion, the normal bull flag isn’t of interest, but rather a variant often called a “pennant” is. The usual bull flag forms when the consolidation happens between two parallel levels, while a pennant observes the asset moving between converging lines.

Here is the chart posted by the analyst that reveals this pattern recently forming in the 4-hour price of Worldcoin:

In this pattern, the top line is created by joining together lower highs, while the bottom line connects lower lows. Typically, the asset is probable to feel resistance at the upper level, while the lower level could act as support.

A break beyond either of these lines can signal the continuation of the trend. From the chart, it’s visible that the 4-hour Worldcoin price had been consolidating inside the pennant channel just recently, but has now seen a break, as its price is surging above the upper level.

Such a bullish breakout has generally led to strong uptrends in the past, with the length of the resulting uptrend often being comparable to the pole of the pattern.

The break has only just started to form, though, so a more sustained uptrend will have to be seen first to see if the pattern has truly taken place. “If confirmed, this could pave the way for WLD to enter an 80% rally, targeting $6.30,” says Ali.

WLD Price

Worldcoin had broken off toward the $4 level earlier in the past day, but the asset has quickly cooled off as it has already receded to the $3.7 mark. The below chart shows how WLD has performed during the last few days.

Had this pullback not taken place, the bullish breakout may well have been confirmed. The coin would have to show some fresh momentum again now if the pattern has to complete.