- The moving averages have formed a bullish crossover, reinforcing the idea of strong bullish momentum.
- The July bearish order block was likely to be broken on W’s first attempt.
Wormhole (W) bulls were in a hurry to push prices beyond the $0.4 level. The $0.278 level, which had been resistance for a little over a month, was breached and retested as support. Trading volume increased significantly compared to last week.
This has encouraged traders and holders that the token could see more gains in the coming weeks, with the next target being the $0.52 resistance level.
Crypto Wormhole Breaks Weekly Structure
Source: W/USDT on TradingView
The $0.2785 level was the recent low of Wormhole’s downtrend on the weekly chart. The price rise beyond this level showed a bullish breakout in the market structure on the week, with the day also reversing.
The same level was retested as support over the past few days before the Wormhole crypto saw a massive price rally. It has gained just over 40% in the last 24 hours and could continue to rise.
The bearish order block between $0.36 and $0.38 was about to be breached. Swing traders may consider taking profits around these levels and waiting for consolidation around or above resistance before looking to re-enter a long position.
The OBV showed strong demand for W and the DMI highlighted an intense uptrend underway on the 1-day chart. July’s retest of resistance meant that taking profits, at least partially, was a viable option for traders.
Short-term sentiment flies to the moon
Source: Coinalyse
Open interest was at $44 million a day earlier. It rose nearly 50% to $64.8 million, demonstrating strong bullish conviction. Buyers were eager to invest in long positions, and this trend was repeated in the spot market as well.
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The funding rate fell in recent hours, but started to rise to show that more participants were willing to take long positions. Price action and futures data showed that a move towards $0.4 was likely.
It remains to be seen whether the rally will continue or whether the bulls will need some breathing space.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
