Three reasons why Wormhole could be gearing up for a major rally

Wormhole’s token w shows early signs of a bullish reversal, because the ecosystem continues to become more popular with large players.

According to data from crypto.news, Wormhole (W) exchanged hands on $ 0.0631, last check 27 June, with a market capitalization of more than $ 293 million. Toking continues to fall more than 80% compared to its year to date from $ 0.317.

This dramatic decrease has left almost 96% of holders under water, creating sustainable sales pressure, while investors try to reduce losses, facts From Intotheblock shows. The losses of Wormhole also come because it is confronted with heavy competition from other large players in the interoperability room, such as Cosmos and Polkadot.

Despite months of falling prices, a series of emerging catalysts could finally mark the end of the Wormhole’s market market and signal a potential bullish reversal in the coming weeks.

First, Wormhole recently to collaborate With Ripple to bring multichain support to the XRP whides (XRPL) and Ripple’s new EVM-compatible sidechain. With the integration, both networks can collaborate with more than 35 block chains, which considerably expand their interoperability options.

This improved connectivity could increase the activity of the cross-chain via Wormgat, which in turn can stimulate a higher demand for W token.

Secondly, Crypto Exchange Coinbase recently added WORMHOLE to his mention Route map. A potential list on a top platform such as Coinbase often serves as an important catalyst for market interests, which usually increases the liquidity, visibility and stirring of investors.

If confirmed, the spotlisting can cause the renewed hype and upward price momentum for the W -Token in the short term.

Thirdly, Wormhole seems to be busy forming a double soil pattern on the daily graph, a classic bullish reversing structure that is often observed at the end of persistent downward trends. The two lows of the pattern form around the level of $ 0.05, while the neckline resistance is around $ 0.117.

Momentum indicators such as the MACD line have been crossed above its signal line, while the relative strength index is upwards, both suggest a growing bullish momentum.

If Wormgat continues along this route and successfully completes the pattern, this will probably test the neckline again at the end of August. A confirmed outbreak above the neckline, in particular with increasing volume, would validate the pattern and signal a shift in the market structure.

Such an outbreak could open the door for a meeting in the direction of the psychological resistance level of $ 0.20, which would be a profit of more than 200% compared to current prices.

However, if Wormhole does not contain any support of $ 0.05, the setup with double bottom would become invalid. A breakdown below this important psychological level, especially if it is accompanied by an increasing sales volume, can speed up downward pressure and push to $ 0.04, which marks a new local low point.