Wormhole [W] has displayed impressive resilience by breaking free from its prolonged downward trend and retesting $0.277 as a firm support level.
This bullish confirmation has paved the way for potential upward movement, with Wormhole now setting its sights on a critical resistance level at $0.362. Currently, Wormhole is being traded at $0.3197, showing a 2.64% decline in the last 24 hours.
Despite this slight dip, traders remain positive, focusing on whether Wormhole can breach the $0.362 resistance and move towards higher price levels like $1.0084.
Analysis of Wormhole’s Price Trends and Major Resistance Level
Wormhole’s recent price movements have indicated a possibility of further bullish momentum. The breakout above the descending trendline, followed by a successful retest at $0.277, has instilled confidence among investors.
Nevertheless, overcoming the key resistance at $0.362 is essential to confirm the strength of the current rally. If this level is surpassed, it could pave the way for reaching the $1.0084 target, which aligns with the next significant resistance zone.
On the contrary, a failure to breach above $0.362 may result in consolidation, with $0.277 remaining a crucial support level.
Therefore, the upcoming trading sessions will be crucial in determining whether Wormhole will continue its upward momentum or retrace to retest its support levels.
Evaluation of Technical Indicators
Technical indicators present a mixed outlook for Wormhole. While the MACD has exhibited a slight bearish divergence with the MACD line dipping below the signal line, suggesting a potential slowdown in momentum, the ADX reading of 22.26 indicates moderate trend strength.
Therefore, a successful breach above $0.362 could reinvigorate the uptrend, potentially boosting the ADX and confirming a stronger momentum in the rally.
Insights from Wormhole’s Address Statistics and Network Participation
Analysis of on-chain data offers additional insights into Wormhole’s performance. The number of active addresses has seen a 4.72% increase in the past week, indicating consistent engagement from existing users.
However, the decrease in new addresses by 11.76% suggests challenges in attracting new participants to the network.
Hence, while the current community’s activity remains robust, expanding user engagement is crucial for ensuring sustained growth in the long run.
Market Sentiment and Liquidation Data
According to Coinglass analytics, liquidation data reflects a positive sentiment among traders regarding Wormhole’s revival. Long liquidations amount to $42.17K, surpassing shorts at $34.59K, indicating optimism about Wormhole’s recovery.
Moreover, there has been a 5.97% rise in Open Interest, reaching $70.62M, signifying heightened market activity and the potential for increased volatility in the near future.
For Wormhole to progress towards the $1.0084 target, successfully surpassing the $0.362 resistance level is crucial to validate its bullish momentum.
A definitive breakthrough above this resistance would bolster trader confidence and set the stage for substantial price growth.
Nevertheless, failing to exceed this level may result in sideways movement or a retest of $0.277, which remains a critical support level.