- The moving averages formed a bullish crossover, reinforcing the idea of significant upward momentum.
- July’s bearish order block would likely be broken on W’s first attempt.
Wormhole [W] Bulls were in a hurry to push prices past the $0.4 level. The $0.278 level, which had been resistance for just over a month, was broken and retested as support. Trading volume has increased significantly compared to last week.
This encouraged traders and holders that the token could post more gains in the coming weeks, with the next target being the $0.52 resistance level.
Wormhole crypto breaks the weekly structure
Source: W/USDT on TradingView
The $.2785 level was the recent lower high of Wormhole’s downtrend on the weekly chart. The price increase above this level showed a bullish market structure break in the weekly market, with the daily market also reversing.
The same level was retested as support in recent days before Wormhole crypto saw a massive price increase. The price is up just over 40% in the past 24 hours and could rise further.
The bearish order block of $0.36-$0.38 was about to be broken. Swing traders may want to consider taking profits around these levels and waiting for consolidation around or above resistance before re-establishing a long position.
The OBV showed strong demand for W and the DMI painted an intense uptrend on the 1-day chart. The retest of resistance in July meant that taking profits was, at least in part, a viable option for traders.
Short-term sentiment is flying to the moon
The Open Interest amounted to $44 million a day earlier. It rose almost 50% to $64.8 million, showing strong bullish conviction. Buyers were eager to go long, and this trend was also repeated in the spot market.
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The funding rate fell in recent hours but started to trend upward, showing that more participants were willing to go long. The price action and futures data showed that a move to $0.4 was likely.
It remains to be seen whether the rally will continue or whether the bulls need some breathing space.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
