Wormhole (W) Price Builds Momentum in Horizontal Zone, Breakout Could Be Imminent
Wormhole started increasing since November low and is now at key descending resistance. Breakout above will hint at a new bull phase.
Key Takeaways
- Descending resistance at $0.29 is a critical breakout level.
- $0.16 acts as a strong accumulation and support zone.
- Targets at $0.37 and $0.43 align with Fibonacci extensions.
After Wormhole (W) showed a prolonged correction phase dominated by a descending trendline since April, it bottomed at $0.16 in August.
The price consolidated and tested key resistance at $0.29. Momentum indicators suggest the potential for a breakout, with targets at $0.37 and $0.43 if resistance is breached.
Wormhole Price Analysis
The daily chart of W shows a clear descending trendline dominating price action, starting from its all-time high of $1.40 in April and continuing through its prolonged correction phase.
On Aug. 5, it made a low of $0.16, recovering to a high of $0.35 on Oct. 3.
These are the support and resistance levels of the formed horizontal zone, inside which the price has been moving sideways after a continuous decline since August.
It is worth noting that the price kept higher on the pullbacks from its low in August, indicating some upward pressure.
On Nov. 4, we saw the daily Relative Strength Index (RSI) at the oversold zone, indicating that a bullish reversal might come next.
By Nov. 24, the price came to retest the descending resistance at around $0.28, where it currently trades. The improving momentum, climbing out of oversold territory, suggests the potential for further upside. But the breakout above the descending resistance could again be halted at a horizontal level.
Key observations:
- Descending Resistance: The price approaches a key descending trendline, acting as a critical resistance level. A breakout would confirm the end of the corrective structure.
- Support Base: The $0.16 level served as a strong accumulation zone, marked by multiple successful retests, solidifying it as key support.
- Potential Breakout: If the price breaches $0.36 and the descending trendline, a move toward $0.50 becomes plausible, aligning with previous horizontal resistance levels and increased bullish momentum.
A sustained break above the descending trendline would shift the market’s sentiment bullish, while failing to do so may result in another retracement toward the $0.28-$0.16 support zone.
W Price Prediction
Zooming into the 1-hour chart for W/USD and examining the wave structure, we can see that the price could have only started its bullish advancement on Nov. 4.
Additionally, from there to its high of $0.29 on Nov. 11, we could have seen the end of the first sub-wave, followed by a higher low of $0.21 for its second on Nov. 21.
That would indicate that wave 3 is in development. It should lead to a breakout above the horizontal resistance to a target of $0.367 at the 1.618 Fib extension.
If that happens, both descending and horizontal resistances would be breached, and an impulsive structure would confirm the uptrend.
In that case, the price of W would be expected to continue moving upward. Developing a five-wave impulse that would reach a high of $0.43.
Key Levels to Watch:
- Support Levels:
- $0.26: Significant horizontal pivot point
- $0.21: The last low from which the rise started
- Resistance Levels:
- $0.29: Descending trendline resistance and 0.786 retracement of the prior wave.
- $0.37: 1.618 Fibonacci extension, aligning with the projected wave (iii) peak.
- $0.43: 2.272 Fibonacci extension and potential wave (v) target.
If the price breaks above $0.29, it will confirm the bullish trend toward $0.37.
However, rejecting this trendline could signal a retracement toward $0.26 or lower, testing the structure’s strength before resuming the upward move.
Wormhole Price Prediction 2025: Success May Take Time, but Momentum Builds
