Wormhole price prediction – Assessing the downside risk for W traders

Key Takeaways

Wormhole tried and didn’t breach the vary highs on Friday and sank in direction of the $0.08 help zone. Particularly as Bitcoin fell under the $110k-mark and hinted at bearish dominance.

Wormhole [W] noticed heightened volatility within the final 24 hours. On Friday, 29 August, W surged by 33.2% in simply 4 hours – From the day’s low at $0.079 to $0.106. Since then, accompanied by Bitcoin’s [BTC] drop under $110k, Wormhole has shed a big a part of its latest positive factors.

Bearish weekly outlook and Wormhole vary formation

Supply: W/USDT on TradingView

The weekly swing factors had been marked in white at $0.104 and $0.054. Since April, Wormhole has made a brand new swing low, which means that the weekly market construction was bearish. The day by day chart confirmed that W shaped a variety (purple) between $0.071 and $0.098.

Given the bearish weekly construction, the consolidation in latest weeks won’t be an encouraging issue. Bitcoin‘s weak spot signifies that Wormhole bulls have additionally been struggling. The CMF was at -0.23, on the time of writing.

This highlighted excessive capital flows out of the market. Furthermore, the mid-range resistance at $0.085 rebuffed the bullish advance over the past 48 hours. This era noticed excessive volatility, with Wormhole token’s worth hitting $0.1058 earlier than falling by 23.6% in underneath 24 hours.

The Superior Oscillator underlined weakly bearish momentum. So as to add to the bulls’ woes, the Stochastic RSI gave the impression to be rising in direction of the overbought zone. A bearish crossover there would sign one other transfer decrease for W.

Supply: W/USDT on TradingView

Lastly, on the 2-hour chart, the altcoin gave the impression to be quick approaching a key help zone. Highlighted in cyan, the bullish order block at $0.08 shaped the bottom from which the value rallied to the vary highs a few days in the past.

The technical indicators didn’t present a lot hope for a restoration. Whereas the Stochastic RSI appeared to provide a bullish sign, the CMF steered promoting strain was rampant. The Superior Oscillator flashes indicators of weakening bullish strain too.

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion