TLDR
- Worldcoin Foundation raised $135 million by selling WLD tokens to early investors Andreessen Horowitz and Bain Capital Crypto at market price
- WLD price surged 37% in one day following the funding announcement, with trading volume increasing 140%
- The funds will be used to expand Orb hardware rollout in the United States and support global network growth
- More than 26 million users participate in the World network with 12.5 million having Orb-verified World IDs
- Technical analysis shows WLD breaking above $1.4 resistance but may face pullback due to overbought conditions
Worldcoin’s WLD token experienced a massive price surge on Wednesday, climbing 37% in a single day after the Worldcoin Foundation announced a $135 million funding round. The foundation sold liquid WLD tokens at spot price to two early backers, Andreessen Horowitz and Bain Capital Crypto.
The funding represents a direct purchase of tokens rather than a traditional venture round. No discounts were offered and no lock-up periods were applied to the purchased tokens.
Daily trading volume for WLD increased by nearly 140% compared to the previous day. The explosive price movement caught many traders off guard despite the bullish trend that had been building over the past month.
The Worldcoin Foundation stated the capital will fund rapid expansion of the project’s iris-scanning Orb hardware in the United States. The company also plans to use funds to keep pace with surging demand in international markets.
Current network statistics show more than 26 million users participate in the World network. Over 12.5 million people have obtained Orb-verified World IDs through the biometric identity verification process.
The foundation described the funding as helping the network become “one of the first self-sustaining protocols.” The project positions itself as a proof-of-personhood solution designed to counter artificial intelligence advances.
Major Investors Double Down at Market Price
Andreessen Horowitz’s participation continues its early involvement in the Worldcoin ecosystem. The venture capital firm was a lead investor in Tools for Humanity during its 2021 Series A round, making it a foundational backer before the World Foundation existed.
Market observers noted the unusual nature of the transaction. Bitwise CIO Matt Hougan commented that seeing major investors purchase $135 million worth of tokens at current market prices was intriguing, especially given WLD’s 90% decline over the past 14 months.
The purchase is being interpreted as a high-conviction signal from institutional investors. The timing comes after WLD reached significant lows, with the token trading as low as $0.57 earlier this year.
Technical Analysis Shows Momentum Building
WLD’s price had been trending upward before Wednesday’s explosive move. The token broke through the $1 psychological resistance level in late April, establishing bullish momentum.
Earlier in May, WLD dipped below $1 in what appeared to be a liquidity hunt before quickly reversing course. A week before the funding announcement, the price tested the $1.07 level, retesting demand around the $1 zone.
Technical indicators show the On Balance Volume trending higher over the past two months. The indicator made higher highs and higher lows, suggesting accumulation by buyers.
The Relative Strength Index reached 72 on the daily chart, marking the first entry into overbought territory in nearly two weeks. On the 4-hour timeframe, RSI hit 87, a level not seen in recent weeks.
The rapid 41% rally in under 36 hours has pushed WLD above the $1.4 resistance level. However, the overbought conditions suggest a potential pullback may occur.
Traders looking to enter long positions may want to wait for a retracement to the $1.4 level or deeper to $1.32. The weekly chart shows WLD rebounding from $0.57 lows and approaching key moving average resistance levels.
At press time, WLD was trading at $1.337, hovering below the key resistance area between $1.33 and $1.41.
The post Worldcoin (WLD) Price: Token Rises 37% Following $135 Million Funding Round appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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