Worldcoin (WLD) has been under pressure lately, with its price dropping over 46% from its monthly high of $5. However, analysts are predicting a potential turnaround, citing technical indicators and positive developments within the broader crypto market.

One key signal comes from the TD Sequential indicator on the 3-day chart. This indicator has flashed a buy signal, suggesting a potential bullish reversal in the next one to four candlesticks. Crypto analyst Ali Charts further bolsters this view, forecasting a rise above the $3 resistance level.

This optimism aligns with the recent recovery in the overall crypto market capitalization, which has risen by 0.65% despite a bearish week. While WLD remains slightly down at press time, trading around $2.59, this broader market trend suggests a potential tailwind for the coin.

Technically, WLD’s indicators offer mixed signals. The Relative Strength Index (RSI) sits at 24.59, indicating oversold territory. This can be interpreted as a potential sign of an impending bullish correction as traders seek to buy the dip. However, the Moving Average Convergence Divergence (MACD) currently resides in negative territory, highlighting continued bearish pressure.

Beyond technical analysis, recent partnerships and industry developments could also influence WLD’s trajectory. Worldcoin’s collaboration with Alchemy to build the World Chain with advanced blockchain technology could enhance its capabilities and user experience. Additionally, the growing influence of Artificial Intelligence (AI), exemplified by Nvidia’s rise to become the world’s largest company by market cap, highlights the increasing importance of advanced processing power for blockchain systems. This trend could benefit Worldcoin, which relies on robust technology for its operations.

While some short-term volatility remains likely, the combination of technical indicators, positive market sentiment, and promising partnerships suggest a potential rebound for Worldcoin in the near future. Investors should keep a close eye on the price action and emerging developments within the crypto space to make informed decisions.

By Alex Wheeler

Alex is a lead writer at AltcoinsAnalysis, bringing the audience all leading developments in the blockchain industry and the latest trends in the cryptocurrency market.