Wormhole (W) surges 40%, faces key resistance at $0.36

The Essentials at a Glance

• Wormhole (W) broke through the resistance at $0.278 and recorded a price increase of 40.8%.
• Trading volume has multiplied compared to the previous week, indicating increased interest.
• Open interest rose by almost 50% within 24 hours to $64.8 million, suggesting strong bullish conviction.
• Traders should consider potential profit-taking at $0.36-$0.38, as a bearish order block lies in this range.

Key Resistances Broken

Wormhole (W) was able to break through the resistance at $0.278 in recent days. This price level had proven to be a persistent barrier for over a month. After the breakthrough, the level was successfully tested as support, paving the way for the current price increase. Within 24 hours, the price surged by more than 40%, nearly reaching $0.4.

Technical Analysis Shows Bullish Tendencies

The technical analysis of the chart indicates that Wormhole’s price movements suggest a clear trend reversal. The breakthrough above $0.278 marks a structural break on the weekly chart, pointing to a bullish market sentiment. The structure has also shifted in favour of the bulls on the daily chart. The moving averages have formed a bullish crossover, indicating further upside potential.

Another important point is the bearish order block in the $0.36 to $0.38 range. This could act as resistance in the short term. Swing traders might consider taking profits here and waiting for consolidation before re-entering long positions.

Open Interest and Trading Volume Rise

Another indicator of the bullish sentiment is the rise in open interest. Within just 24 hours, it increased from $44 million to $64.8 million, indicating strong buyer conviction. Trading volume has also multiplied compared to the previous week, underscoring the growing interest in Wormhole.

Brief Pause or Further Increase?

The short-term sentiment remains optimistic. Despite a slight decline in the funding rate over the last few hours, the price action shows that a further increase to $0.4 is possible. However, it remains to be seen whether the bulls will need a brief pause or if the upward trend will continue uninterrupted.

Our Assessment

Wormhole currently shows strong bullish momentum, supported by the breakthrough of key resistances and the increase in open interest. However, traders should remain cautious, as the range around $0.36-$0.38 could act as short-term resistance. Taking profits in this area is a sensible strategy before considering re-entry. The coming days will reveal whether the price can continue to rise or if a consolidation is imminent.