Worldcoin’s WDC token has recorded a notable sell-off in recent trading sessions sparking concerns among investors. As its value nosedived, WDC’s Relative Strength Index [RSI] has dipped into the oversold territory. Market experts believe that a rebound is on the horizon citing historical oversold conditions having led to significant upward movements.
In the 1-day chart shared by Jonathan Carter, RSI, the leading momentum oscillator used to recognize overbought or oversold conditions in a market, has fallen below the key threshold of 30. This level often signals that a security or asset has been oversold and may be due for a correction. But in Worldcoin’s case when RSI hit similar low levels earlier, a sharp rally ensued and the cryptocurrency’s price doubled within a few weeks. As this pattern repeated several times over the past year, it has certainly made the argument for an impending bounce stronger.
Additionally, several factors might contribute to Worldcoin’s anticipated rebound. Firstly, the oversold RSI condition could trigger trader’s interest who are looking for bargain entries, potentially driving up buying pressure. Secondly, the broader cryptocurrency market has stabilized after a recent downturn. All these can provide opportunities for Worldcoin’s price recovery.
Worldcoin’s Future Outlook
Moreover, Worldcoin’s underlying fundamentals remain strong. The project continues to make strides in its mission to create a global digital identity system, with recent partnerships and technological advancements bolstering its long-term prospects.
However, it’s essential to approach this potential rebound with caution. While historical data suggests a positive outlook, the cryptocurrency market is notoriously volatile and influenced by various factors, including regulatory news, technological developments, and broader economic conditions. Investors should consider these elements before making any trading decisions.
Meanwhile, Worldcoin has faced regulatory hurdles and has recently suspended its activities in Spain until the end of the year or until the German authority overseeing its operations under the European Union’s General Data Protection Regulation (GDPR) completes its audit. As reported by TronWeekly, this move follows a decision by Tools for Humanity, a key contributor to Worldcoin, to voluntarily extend the pause of its orb operations in Spain.