Wormhole Price Prediction – Gauging the Downside Risks for W Token Holders

Wormhole's W token faces mounting pressure as market volatility exposes key vulnerabilities.

Technical Breakdown: Support Levels Tested

The cross-chain protocol's native asset struggles to maintain momentum after recent market corrections. Trading patterns suggest increased selling pressure from early investors looking to secure profits.

Market Realities: Liquidity Concerns

Thin order books across major exchanges amplify price swings during periods of high volatility. The token's relative newness in the market means it lacks the institutional support that stabilizes more established cryptocurrencies.

Risk Assessment: Downside Targets

Technical analysts point to several critical support levels that, if broken, could trigger accelerated selling. The absence of major fundamental catalysts in the near term adds to the downward pressure.

Meanwhile, traditional finance veterans watch from the sidelines—still trying to figure out why anyone would need seventeen different ways to bridge assets between chains while paying gas fees that would make a Wall Street broker blush.

Key Takeaways

Wormhole tried and failed to breach the range highs on Friday and sank towards the $0.08 support zone. Especially as Bitcoin fell below the $110k-mark and hinted at bearish dominance.

Wormhole [W] saw heightened volatility in the last 24 hours. On Friday, 29 August, W surged by 33.2% in just four hours – From the day’s low at $0.079 to $0.106. Since then, accompanied by Bitcoin’s [BTC] drop below $110k, Wormhole has shed a significant part of its recent gains.

Bearish weekly outlook and Wormhole range formation

Source: W/USDT on TradingView

The weekly swing points were marked in WHITE at $0.104 and $0.054. Since April, Wormhole has made a new swing low, meaning that the weekly market structure was bearish. The daily chart showed that W formed a range (purple) between $0.071 and $0.098.

Given the bearish weekly structure, the consolidation in recent weeks might not be an encouraging factor. Bitcoin‘s weakness means that Wormhole bulls have also been struggling. The CMF was at -0.23, at the time of writing.

This highlighted high capital flows out of the market. Moreover, the mid-range resistance at $0.085 rebuffed the bullish advance over the last 48 hours. This period saw high volatility, with Wormhole token’s price hitting $0.1058 before falling by 23.6% in under 24 hours.

The Awesome Oscillator underlined weakly bearish momentum. To add to the bulls’ woes, the Stochastic RSI appeared to be rising towards the overbought zone. A bearish crossover there WOULD signal another move lower for W.

Source: W/USDT on TradingView

Finally, on the 2-hour chart, the altcoin seemed to be fast approaching a key support zone. Highlighted in cyan, the bullish order block at $0.08 formed the base from which the price rallied to the range highs a couple of days ago.

The technical indicators did not show much hope for a recovery. While the Stochastic RSI appeared to give a bullish signal, the CMF suggested selling pressure was rampant. The Awesome Oscillator flashes signs of weakening bullish pressure too.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion