After consolidating for a week, Worldcoin is showing upside strength, with World ID adoption and technical momentum acting as catalysts.

According to data from crypto.news, Worldcoin (WLD) jumped 31% to hit an intraday high of $1.63 on May 23 Asian morning time, marking a massive 180% gain from its lows last month.

WLD’s rally was matched by a surge in market participation, with spot volume climbing 160% to nearly $1.3 billion and derivatives volume spiking 208% to $2.69 billion. According to CoinGlass data, its open interest also rose 48% to $427 million, a tell-tale sign of renewed investor confidence.

The main catalyst behind today’s rally is renewed investor interest following news that the World Foundation raised $135 million in funding. In a May 21 update, the team said this fresh capital will be used to grow their iris-based identity network, World ID.

Top crypto investors like Andreessen Horowitz and Bain Capital Crypto led the round and bought Worldcoin tokens at market price. That not only added more tokens into circulation but also brought strong institutional backing, adding credibility to the project.

This funding comes at a time when Worldcoin’s adoption is gaining momentum. World ID has now expanded into the U.S. and continues to gain traction across Asia. Singapore leads with over 100,000 users, while Japan and South Korea each added more than 10,000 new users in April. 

The network has also entered Southeast Asian markets, including Thailand, Indonesia, Malaysia, and the Philippines.

Meanwhile, on-chain data shows a corresponding rise in daily active addresses and accumulation from large holders, factors that align with today’s price breakout.

Technical setup looks bullish

On the 1-day/USDT price chart, WLD recently broke out above the upper side of a rising wedge, a pattern that typically signals a bearish reversal, but in this case, the breakout turned bullish. The token is also trading above its 50-day simple moving average and is nearing the 200-day SMA, showing strength.

It has also flipped its 200-day exponential moving average into support, a bullish sign. 

Meanwhile, the MACD lines are turning up, hinting that momentum is still on the bulls’ side.

There’s also a possible Cup and Handle pattern forming on the daily chart. The cup’s bottom sits at $0.58, with the neckline around $2.50. If this pattern completes and breaks out, it could lead to another leg up.

Hence, the most likely target for WLD is the $2.50 psychological resistance level, a little over 60% above current prices. If WLD breaks past this, it could trigger another buying wave and potentially aim for the 78.6% Fibonacci retracement level at $3.

Several analysts echo a similar price target, calling for WLD to hit the $2.20–$2.50 range between June and July, provided the bullish momentum holds.

That said, the Relative Strength Index is approaching overbought territory, so WLD could see a short-term correction or sideways action before the next breakout. If it dips below the $1.479 200-day EMA, the next strong support lies around $0.97, which aligns with the 200-day SMA.

At press time, WLD was exchanging hands at $1.55 per coin, still trading 86.7% below its all-time high of $11.74 from March 2024.