Key Takeaways:
Worldcoin’s (WLD) token price increased by approximately 10% within 24 hours on May 22, but the rally is struggling to overcome key technical resistance, fueling concerns that it may be a bull trap.
"A successful daily close above the $0.32–$0.35 cluster would mark a significant change in character that could fuel a rally," according to a technical analysis from CoinPedia. However, failure to break this zone could see the price resume its consolidation.
The token rose to $0.2621 as of 04:45 UTC, according to CoinMarketCap data. The move comes after WLD established a firm base at the $0.2424 support level in late Q1 2026, following a prolonged downtrend from a peak of $2.12 in September 2025.
The core challenge for Worldcoin is whether its fundamental developments, including the rollout of its World Chain Layer-2, can outweigh persistent regulatory hurdles and the selling pressure from a 10 billion total token supply. A price of $10, implying a $100 billion fully diluted valuation, remains a best-case scenario, with some analysts suggesting a more conservative $3 to $7 range by 2030 is more plausible.
The May 22 price action is a critical test for Worldcoin. While the double-digit gain attracted trader attention, it occurred within a broader context of rangebound trading. For a sustainable recovery, the token must first reclaim its 20-day and 50-day exponential moving averages before targeting the primary resistance zone between $0.55 and $0.70. A rejection at current levels could push the price back to the $0.24 floor.
Despite the bearish price action for most of the past year, some on-chain metrics showed positive signs earlier in 2026. Data from January indicated heavy accumulation from large holders, or "whales," and a simultaneous surge in development activity on the network. These factors suggest that long-term believers are using the lower price range as an entry point, betting on the project's goal to build a global digital identity network.
Worldcoin’s ambitious vision is tempered by significant regulatory challenges. Operations have been suspended or restricted in several countries, including Kenya, Spain, and Portugal, due to privacy concerns over its Orb biometric iris-scanning device. While the project has made efforts to address these issues, permanent bans in major economies could severely limit its addressable market and hinder token value appreciation. These risks, combined with a token unlock schedule that will gradually increase the circulating supply, remain the primary obstacles for WLD's long-term growth.
This article is for informational purposes only and does not constitute investment advice.
