WorldCoin Price Analysis: Regulatory Risks & Market Outlook
WorldCoin’s Vision: AI Integration and Human Verification
WorldCoin, founded by Sam Altman and launched in 2023, is built on the idea of deepening AI integration into daily life.
As a result, communication challenges are expected to grow in the near future, with internet users struggling to distinguish between human and AI interactions.
The project enables human identification and verification through iris scanning and cryptographic code storage.
This technology has sparked widespread debate and criticism, impacting the price of the token.
On the Binance crypto exchange, the WorldCoin price dropped over 40% in 2024 and a further 40% YTD, wiping out much of the gains seen in 2023.
Regulatory Headwinds Across Europe and Beyond
European regulators are preparing unified sanctions against WorldCoin, while countries like Spain and Kenya have suspended or banned its operations.
Several nations have also launched investigations into this startup company. These regulatory risks are directly weighing on the token’s market capitalization.
Market Manipulation Concerns and Token Concentration
Additionally, experts highlight a high risk of price manipulation, since a significant portion of tokens is concentrated among a small group of investors and the project team.
In a nutshell, at least three risks stand out. Market or systemic risks relate to the future of AI and its potential challenges for humanity.
Specific or non-systemic risks include regulatory pressures and market manipulation concerns.
Technical Analysis: Bullish Channel vs Breakdown Risk
Technically, WorldCoin’s daily chart shows an upward regression channel, suggesting that the local trend remains bullish.
The token has pulled back toward its local trendline and is currently testing this mark In the event of a breakdown, the next target will be horizontal support at $1.0725.
On the weekly chart, while the price action tested and pulled back from the 23.6% Fibonacci retracement, the token still holds upside potential, with a V-shaped recovery likely before long.
Two Key Scenarios: Bearish Targets or Bull Recovery
Two market scenarios look feasible moving ahead. The first calls for the price action to break and hold below $1.0725, in which case traders are advised to take short positions targeting $0.97 and then $0.57.
Under the second scenario, a reversal and retracement above $1.42 could see the bulls pushing for $1.80, testing the next Fibonacci retracement line at $1.95 and potentially reaching $2.40.
