Wormhole appears to be heading for a bearish reversal, with technical indicators pointing to ongoing weakness just ahead of its listing on Coinbase.
On Tuesday, Coinbase announced that it will list Wormhole (W) as an SPL token on the Solana network, with trading set to begin on July 2. While listings on major exchanges like Coinbase often spark short-term bullish momentum, Wormhole has struggled to generate meaningful investor interest in the lead-up to the event.
The listing follows Wormhole’s recent strategic partnership with Ripple Labs, aimed at enhancing interoperability between Wormhole and the XRP Ledger—including its EVM-compatible sidechain. The collaboration enables cross-chain messaging, asset transfers, and multi-chain token issuance, enhancing the utility of both networks.
Despite these developments, Wormhole’s market sentiment remains muted. The token is down 77.6% year-to-date and currently trades at $0.071, following a modest recovery from its all-time low of $0.051 on June 22.
Investor concerns are further amplified by the concentration of token holdings and unrealized losses. Data from IntoTheBlock shows that 92% of Wormhole addresses are currently at a loss, and 88% of the circulating supply is held by whales. This imbalance heightens the risk of large-scale sell-offs, potentially increasing volatility as these major holders look to minimize further downside.
Additional data from Nansen underscores the ongoing erosion of investor confidence. Over the past week, influencers and publicly known accounts have reportedly been offloading their Wormhole holdings.
These sell-offs by high-profile figures often serve as bearish signals to retail investors, amplifying negative sentiment and accelerating downward pressure on the token. This trend further weakens overall market support for Wormhole at a critical moment.
W price analysis
Wormhole’s market structure is exhibiting further signs of strain, with a bearish pattern now taking shape.
On the 4-hour W/USDT chart, the token has broken below the lower trendline of an ascending broadening wedge—a volatile formation that is generally considered bearish. This pattern had been developing since Wormhole’s recent local bottom, and the breakdown suggests a potential continuation of downward momentum.
An ascending broadening wedge is marked by widening price swings and upward-sloping trendlines—often a sign of growing market instability and weakening directional conviction. A break below the lower boundary typically signals increasing bearish pressure and the potential for further downside.
Technical indicators reinforce this bearish scenario. The MACD has made a bearish crossover, while the Relative Strength Index has slipped back to the neutral 50 level, indicating fading bullish momentum. Additionally, a negative Chaikin Money Flow reading points to declining buying pressure and growing dominance by sellers.
Given the current technical setup, W appears likely to retest the $0.066 level, aligning with the 23.6% Fibonacci retracement zone. A clear breakdown below this support could open the door to further losses, potentially dragging the token back toward its all-time low of $0.051.
While this level may act as a temporary support if selling pressure subsides, a failure to hold above it would increase the risk of a deeper correction, signaling continued bearish momentum.
