- Wormhole has experienced a downward trend until recently.
- Optimism was starting to build up.
Wormhole [W] has seen a price increase over the last few days. Earlier this week, Bitcoin [BTC] rose from the $58k mark to trade at $62k at the time of writing. This increase of 7.8% was outdone by Wormhole.
W has surged by 19.39% in the last three days, outperforming BTC. Nevertheless, its long-term trend continued to appear bearish.
The market structure and trends were lackluster
Source: W/USDT on TradingView
Since August, W has not reached a new lower low on the daily chart, which provided a tiny glimmer of hope for bulls. The price seemed to be forming a range between $0.175 and $0.2785, with the local resistance at $0.2145 in recent weeks.
This resistance was breached during the recent price rally. The Directional Movement Index, which had indicated a strong downtrend, started to show neutral readings.
The CMF also showed an upward trend. The +0.12 value indicated a significant influx of capital into the Wormhole market. Overall, a movement toward the local highs at $0.278 appeared probable.
Market sentiment was improving
Source: Coinglass
The bearish trend seen in August and the first half of September was characterized by low values in the Open Interest chart. Speculators tended to stay on the sidelines, but this situation was gradually shifting.
The price surge observed in the past days prompted bulls to enter the futures market, resulting in a $5 million increase in Open Interest over the last two days.
Source: Coinglass
Read Wormhole’s [W] Price Prediction 2024-25
The OI-weighted funding rate has also turned positive after a brief dip into negative territory on September 17th. This suggests that market participants are beginning to take long positions in the futures market.
In general, the upcoming days are likely to be bullish for Wormhole, provided Bitcoin does not face a steep decline.
Disclaimer: The information provided does not serve as financial, investment, trading, or any other form of advice and reflects solely the author’s opinion.
