The price of the Wormhole (W) cryptocurrency has undergone significant price movements, characterized by a descending trendline that has influenced its price actions since reaching an all-time high of $1.40 in April. This downward trend continued through a correction phase, leading to a low of $0.16 in August and a subsequent recovery to $0.35 by Oct. 3.
Following the correction, the price of W has been consolidating within a horizontal zone, with support and resistance levels clearly defined. Despite the continuous decline since August, the price has shown resilience, particularly with higher pullbacks from its lows in August, hinting at underlying upward pressure in the market.
Technical indicators such as the Relative Strength Index (RSI) have shown signs of bullish reversal, with the daily RSI hitting oversold levels on Nov. 4. As of Nov. 24, the price of W is testing the descending resistance at around $0.28, with improving momentum suggesting a potential for further upside. However, the breakout above the descending resistance may face challenges at a horizontal level, potentially halting the upward momentum.
Analyzing the price movements on a shorter timeframe, such as the 1-hour chart for W/USD, reveals a potential bullish advancement starting on Nov. 4. This pattern could signify the beginning of wave 3 development, aiming for a breakout above horizontal resistance towards a target of $0.367 at the 1.618 Fibonacci extension. If this bullish scenario unfolds successfully, breaching both the descending and horizontal resistances, it could confirm an uptrend, with the price of W expected to reach a high of $0.43 in an impulsive five-wave structure.