Key Takeaways

Wormhole tried and failed to breach the range highs on Friday and sank towards the $0.08 support zone. Especially as Bitcoin fell below the $110k-mark and hinted at bearish dominance.

Wormhole [W] saw heightened volatility in the last 24 hours. On Friday, 29 August, W surged by 33.2% in just four hours – From the day’s low at $0.079 to $0.106. Since then, accompanied by Bitcoin’s [BTC] drop below $110k, Wormhole has shed a significant part of its recent gains.

Bearish weekly outlook and Wormhole range formation

Source: W/USDT on TradingView

The weekly swing points were marked in white at $0.104 and $0.054. Since April, Wormhole has made a new swing low, meaning that the weekly market structure was bearish. The daily chart showed that W formed a range (purple) between $0.071 and $0.098.

Given the bearish weekly structure, the consolidation in recent weeks might not be an encouraging factor. Bitcoin‘s weakness means that Wormhole bulls have also been struggling. The CMF was at -0.23, at the time of writing.

This highlighted high capital flows out of the market. Moreover, the mid-range resistance at $0.085 rebuffed the bullish advance over the last 48 hours. This period saw high volatility, with Wormhole token’s price hitting $0.1058 before falling by 23.6% in under 24 hours.

The Awesome Oscillator underlined weakly bearish momentum. To add to the bulls’ woes, the Stochastic RSI appeared to be rising towards the overbought zone. A bearish crossover there would signal another move lower for W.

Source: W/USDT on TradingView

Finally, on the 2-hour chart, the altcoin seemed to be fast approaching a key support zone. Highlighted in cyan, the bullish order block at $0.08 formed the base from which the price rallied to the range highs a couple of days ago.

The technical indicators did not show much hope for a recovery. While the Stochastic RSI appeared to give a bullish signal, the CMF suggested selling pressure was rampant. The Awesome Oscillator flashes signs of weakening bullish pressure too.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion