Wormhole’s token W has been experiencing a bullish reversal as its ecosystem gains popularity among major players in the crypto space. Despite a significant drop in price from its year-to-date high, there are several emerging catalysts that could potentially signal a turnaround for Wormhole in the near future.
As of June 27, Wormhole (W) was valued at $0.0631 with a market cap exceeding $293 million. The token has seen a decline of over 80% from its peak, leaving the majority of holders in a loss-making position. This has led to sustained selling pressure as investors try to mitigate their losses, according to data from IntoTheBlock. Additionally, Wormhole faces tough competition from other interoperability projects like Cosmos and Polkadot.
However, recent developments have sparked optimism for a bullish reversal in Wormhole’s market trajectory. One key partnership is with Ripple, where Wormhole will enable multichain support for the XRP Ledger and Ripple’s new EVM-compatible sidechain. This integration will enhance interoperability capabilities and potentially drive higher demand for the W token.
Another positive development is Coinbase’s consideration of listing Wormhole on its platform. A listing on a prestigious exchange like Coinbase could significantly boost liquidity, visibility, and investor interest in Wormhole, leading to price appreciation in the short term.
Technical analysis also suggests a potential bullish reversal for Wormhole. The token is forming a double-bottom pattern on the daily chart, with support around $0.05 and resistance at $0.117. Momentum indicators like the MACD line and RSI are showing signs of bullish momentum, indicating a possible breakout in the coming weeks.
If Wormhole successfully completes the double-bottom pattern and breaks above the neckline at $0.117, it could rally towards the $0.20 resistance level, representing a gain of over 200%. However, a failure to hold the $0.05 support could invalidate the pattern and lead to further downside towards $0.04.
In conclusion, while past performance is not indicative of future results, the combination of fundamental partnerships, potential exchange listings, and technical patterns suggest that Wormhole may be gearing up for a major rally in the near future. Investors should conduct their own research and consider the risks before making any investment decisions.