- Wormhole faced key resistance at $0.3737 at the time of writing, with strong support at $0.3245
- Open Interest rose 10.57%, indicating strong interest from traders despite mixed on-chain data
Wormhole [W] recorded a significant increase of 13.93% in the last 24 hours, bringing the price to $0.3626 at the time of writing. This sharp increase, along with a 37% jump in trading volume, has raised questions about whether the token is nearing a breakout or not.
Investors are closely watching key technical levels to see if momentum can continue or if a correction is looming.
Important support and resistance levels to keep an eye on
At the time of writing, the token was approaching a resistance level of $0.3737, according to Bollinger Bands analysis. If the price does not break through, a retracement may follow. However, strong support at $0.3245 could ensure the bullish trend continues.
Moreover, the RSI had a value of 68.64. This indicated an overbought market situation, indicating that caution may be needed as the asset approaches these thresholds.
Source: TradingView
Social dominance of wormholes – Still modest
Its social dominance stood at 0.488%, indicating that it has not yet attracted enough attention for a massive rally.
However, if social dominance increases, it could act as a catalyst for further price increases. Investors are closely monitoring online discussions to anticipate any shifts in market sentiment.
Source: Santiment
On-chain data produces mixed signals
However, indicators on the chain provide a more complex picture. Net network growth fell 3.59%, indicating slower user adoption. Large transactions also fell by 16.55%, indicating a decline in whale activity.
However, the ‘In the Money’ indicator flashed neutral, indicating that most holders may be at a breakeven level. These factors indicated potential short-term volatility.
Source: IntoTheblock
Wormhole’s Open Interest is increasing
An optimistic sign for bulls is the 10.57% increase in Open Interest, with the same record figures of $52.46 million at the time of writing. This means more traders have bet on continued price action.
A rise in Open Interest could push the token above its current resistance levels in the short term.
Source: Coinglass
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Outbreak likely, but caution is advised
Given the current bullish momentum, rising Open Interest and solid support levels, Wormhole could be primed for a potential breakout. However, the mixed signals from social dominance and on-chain data suggested traders should remain cautious.
The key resistance at $0.3737 needs to be broken for a sustained rally. While a breakout seems likely, keeping a close eye on these numbers is crucial to effectively navigating the market’s next move.
