Wormhole (W) has declined by 16.33%, over the past week.
600 million W tokens, worth $180.5 million will be unlocked tomorrow.
The crypto market is anticipating potential bearish momentum as the current market dynamics stay on the borderline of the bearish zone. The tokens are fluctuating and settling back to their recent lows. Among them, the native token of the popular cross-chain bridge platform, Wormhole (W), has declined by 2.40% over the past 24 hours.
The token’s all-time low was hit yesterday at $0.2258, and the all-time high was attained four months ago at $1.61. Amid this uncertainty, Wormhole has announced a major token unlock on August 3. A total of 600 million tokens, valued at approximately $180.5 million are entering into the market.
This results in over 6% of the maximum supply. The current circulating supply is 1.8 billion W tokens. The token unlocking brings in skepticism about whether it will positively impact liquidity or its potential impact on the price. Wormhole recently completed an airdrop in April 2024 for over 670 million tokens.
The crypto market will witness several token-unlocking events this month, including Aptos, Avalanche, Arbitrum, and StarkNet. These token unlocks might significantly affect market conditions by increasing circulating supply, which may lead to selling pressure and price volatility.
Will the Bearish Downturn End Soon?
Over the past month, the token has declined by 33.45% from a high of $0.3655. While analyzing the past week, W token showed a drop of 16.33%, from $0.3067 to $0.2266. Currently, the asset trades at $0.2398 with a market cap of $434 million. Meanwhile, the daily trading volume has increased by 35.27%, to $34.14 million, as per CMC data.
The short-term 21-day moving average (21MA) stays at $0.2972, and the 9-day moving average (9MA) at $0.2672. Both MA’s are seen above the current price, which suggests W’s presence within the bearish zone. Moreover, the token is in an oversold condition, as the daily relative strength index (RSI) currently stands at 32.40.
Wormhole price chart (Source: TradingView)
Wormhole can surpass the initial resistance at $0.2964, and it is expected to climb to a high of $0.3607 if the bulls step in. Conversely, if Wormhole fails to hold above the initial resistance, it could decline to $0.1838. The potential dip might drive the price to $0.1356.
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