Wormwhole (W) Breaks 172-Day Trendline After 125% Price Increase
Why is the Wormhole Price Increasing? | Credit: Derek Fenech
Key Takeaways
- The Wormhole (W) price has fallen 75% since its launch.
- W broke out from a long-term descending resistance trend line.
- Has the lengthy Wormhole downward trend finally ended?
The W price fell immediately after its launch, creating a sharp downward trend that culminated with a new all-time low of $0.162 in August. However, the price has regained its footing since.
After breaking out from its resistance trend line, Wormhole increased by more than 25% on Oct. 1 alone, likely fueled by the anticipation surrounding its listing on Upbit , South Korea’s biggest exchange.
Let’s analyze the price action and see if this increase is a sign of things to come.
Wormhole Price Breaks Out
The Wormhole price has fallen since its launch in April. The decline was contained under a descending resistance trend line, which caused three rejections (black icons).
After falling to a new all-time low of $0.162, the W price created a higher low and broke out from its resistance trend line on Sept. 17, after 172 days.
On Oct. 1, W reached a high of $0.407, its highest price since July. It is approaching the $0.55 resistance area.
During the increase, the Relative Strength Index (RSI) and MACD Moving Average Convergence/Divergence (MACD) crossed their bullish thresholds at 50 and 0, respectively.
In the case of the MACD, the indicator crossed into positive territory for the first time in history.
Read More: Wormhole Price Prediction 2024: W Price Analysis
It is worth mentioning that the W supply increased drastically on Aug. 3, potentially contributing to the downward movement. However, there are no more unlock s until April 2025, so the circulating supply will remain constant for six more months despite the lack of a maximum supply.
Is the Upward Movement Over?
The W price has increased nearly 125% since its August low of $0.162. The upward movement follows a parabolic ascending support trend line. While unsustainable in the long run, this could lead to rapid, short-term gains if intact.
However, the wave count shows what is likely an A-B-C structure, where waves A:C had a 1:1.61 ratio, which is common in these corrections.
If the count is accurate, the W upward movement ended with the long upper wick on Oct. 2, and W will resume its downward trend.
If this is true, the W price will soon break down from its parabolic ascending support trend line. The closest support area is at $0.28.
The alternative would be a five-wave increase (white), in which the W price finishes the fourth wave in a five-wave increase. In this possibility, W will bounce at the trend line and complete one more high before breaking down.
In both cases, a short-term retracement is likely. Then, the long-term trend is considered bearish until the W price reclaims the $0.55 horizontal resistance area.
Wormhole Bearish Trend Intact
Despite an impressive increase after its August lows that led to a breakout, the W trend is still bearish. New lows are likely as long as the W price trades under the $0.55 horizontal resistance area.
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