Worldcoin (WLD) price is likely to rally after a week-long consolidation catalyzed by Nvidia’s earnings on Wednesday if these exceed estimates. Based on recent history, Nvidia (NVDA) has served as a major market mover for AI-related altcoins, including WLD, which has benefited from the chipmaker’s recent string of good earnings.
During the last earnings call on February 21, Nvidia’s earnings per share came in 12.34% higher than what analysts expected. This upside surprise supported AI coins, including Worldcoin, whose price shot up 50% between February 21 and 22.
In November, the 19.4% positive surprise in Nvidia’s earnings report also saw Worldcoin soar nearly 20% from its daily low.
If history repeats, and Nvidia’s actual earnings are higher than the estimated EPS of $5.60, AI tokens, including WLD, could climb higher.
Worldcoin price crashed 69% from its all-time high (ATH) of $11.97 seen on March 10 and has been consolidating between $4.59 and $5.24 for more than a week. The weekly support level of $4.59 has managed to bounce WLD up by 7% to where it currently trades at $5.07.
With Nvidia earnings around the corner, a positive surprise could lead to a breakout from the rangebound movement, flipping the $5.24 hurdle into a support floor. In such a case, investors can expect WLD to rally 20% and tag the next daily resistance level at $6.30 from May 13. But the bounce could be cut short around the $6 psychological level.
On the other hand, if the earnings report is lackluster or misses estimates, the likely direction for WLD is south. This bearish development could see the AI-based altcoin revisit the range low of $4.59. In a dire case, Worldcoin price could breach the said level, triggering a 10% crash to retest the $4.20 weekly support level. This level would be a good opportunity for sidelined buyers to accumulate WLD if the outlook for the overall crypto market remains bullish.
WLD/USDT 4-hour chart
Despite strong technical analysis, if the Worldcoin price produces a daily candlestick close below the $4.20 weekly support, it would denote weakness in the market. This move would create a lower low on the higher time frame and invalidate the bullish thesis. WLD could then trigger a 9% correction to the April 13 swing low of $3.69.