Wormhole’s token ($W) has been consolidating in a tight range for several months, and traders are closely watching technical signals that suggest a potential breakout. W has shown a bullish divergence on higher timeframes, which many analysts see as a possible turning point. Trading activity and on-chain data are also being examined as market participants look for confirmation of a shift in momentum.
Wormhole Technical Patterns and Market Signals
Several analysts have pointed to bullish setups on Wormhole charts. Crypto Rover noted that $W is showing a weekly bullish divergence between price and RSI. The RSI moved higher while the token set lower lows, which is often watched for reversal signs.
TraderPA also stated that $W has been trading in a multi-month consolidation phase and suggested a sharp bounce could follow. He remarked that the token has the potential for a “3x” move once momentum shifts. Open4profit pointed to an inverse head and shoulders formation, describing it as a pattern suggesting momentum change.
On the weekly timeframe, $W traded at around $0.25 in mid-August after declining from earlier highs near $0.40. RSI climbed from oversold levels below 30 to near 45, signaling increased buying activity despite price weakness. Resistance remains near $0.35, while traders also monitor $0.22 as a support level.
Analyst Views and On-Chain Metrics
Michaël van de Poppe described $W as one of his preferred tokens and pointed to bullish divergences across multiple timeframes. He emphasized that the token appeared “on the edge of breaking out” and noted that the Wormhole team continued to deliver new features.
Recent developments include the introduction of Portal Earn, a service allowing users to bridge, swap, stake, and earn rewards. Analysts say such product launches can support network adoption, especially when paired with new incentive mechanisms. Open4profit also mentioned that incentives usually attract more users to a protocol.
Bullish setup on Wormhole $W
Inverse Head & Shoulders pattern signaling momentum shift.
Wormhole’s PortalBridge also announced Portal Earn where you can earn points from bridging, swapping, and staking
Incentives always fuel adoption.
pic.twitter.com/XTqPHbYhjF
— Open4profit (@open4profit) August 18, 2025
On-chain data has shown an increase in Wormhole’s total value locked, which rose 20% in the past month to reach $1.2 billion. Rising activity is seen by traders as confirmation that network use is growing alongside technical strength.
Trading Activity and Wider Market Context
Daily trading volume for Wormhole’s derivatives rose nearly 50% to $62.37 million, showing stronger activity across exchanges. At the same time, open interest fell by 8.7% to $39.04 million, suggesting that some traders closed positions instead of adding new ones. Long positions faced more liquidations than shorts, showing that the market remains unstable even as overall sentiment leans positive.
Retail and professional traders remain heavily long on Binance and OKX, though the long-short ratio overall stands at 0.92. Futures open interest climbed 12% to $30 million as of August 17, 2025, which shows that leveraged positions continue to build. The $W/USDT pair also rose 7% in 24 hours to $0.28, attracting interest from swing and short-term traders.
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