Wormhole Token W Shows Bullish Reversal Signs Amid Strategic Partnerships

Wormhole’s token, W, is showing early signs of a bullish reversal as its ecosystem continues to gain popularity among major players. As of June 27, Wormhole (W) was trading at $0.0631, with a market capitalization exceeding $293 million. The token has experienced a decline of over 80% from its year-to-date peak of $0.317, leaving nearly 96% of holders in a loss position. This has resulted in sustained selling pressure as investors attempt to mitigate their losses. Wormhole’s challenges are compounded by intense competition from other major players in the interoperability sector, such as Cosmos and Polkadot.

Despite the prolonged price decline, several emerging catalysts suggest that Wormhole’s market downturn may be nearing an end, potentially signaling a bullish reversal in the coming weeks. Firstly, Wormhole has recently formed a strategic partnership with Ripple to introduce multichain support to the XRP Ledger (XRPL) and Ripple’s new EVM-compatible sidechain. This integration will enable both networks to connect with over 35 blockchains, significantly enhancing their interoperability capabilities. This increased connectivity could drive higher cross-chain activity through Wormhole, potentially boosting demand for the W token.

Secondly, a prominent crypto exchange has included Wormhole in its listing roadmap. A potential listing on such a platform often serves as a significant catalyst for market interest, typically enhancing liquidity, visibility, and investor demand. If confirmed, this listing could generate renewed excitement and upward price momentum for the W token in the near term.

Thirdly, Wormhole appears to be forming a double-bottom pattern on its daily chart, a classic bullish reversal structure often observed at the end of sustained downtrends. The two lows of the pattern are forming around the $0.05 level, while the neckline resistance sits at approximately $0.117. Momentum indicators such as the MACD line have crossed above its signal line, and the Relative Strength Index is trending upward, both suggesting growing bullish momentum. If Wormhole continues along this trajectory and successfully completes the pattern, it is likely to retest the neckline by late August. A confirmed breakout above the neckline, particularly with rising volume, would validate the pattern and signal a shift in market structure. Such a breakout could pave the way for a rally toward the $0.20 psychological resistance level, representing a gain of over 200% from current prices. However, if Wormhole fails to hold the $0.05 support, the double-bottom setup would be invalidated. A breakdown below this key psychological level, particularly if accompanied by rising sell volume, could accelerate downward pressure and push the token toward $0.04, marking a new local low.