Wormhole token price rose on Thursday, snapping a four-day losing streak by edging up 2.9 percent to trade at $0.2224. The crypto asset has had a rough run in recent weeks, and was down by -15.6 percent in the last month and at -80.6 percent year-to-date as of this writing. The latest recovery is driven by new that Renzo Protocol deployed its REZ token on Solana, leveraging Wormhole’s framework.
The cross-chain protocol has struggled to attract users despite its initial attractiveness at launch. Built as a platform for facilitating seamless cross-chain token transfers, Wormhole faces growing competition, as more tokens are developed with in-built cross-chain interoperability. However, the volume of Wormhole token used in transactions has whipsawed, creating demand-side pressure.
As a result, WUSD has not lived up to its full potential in an era when thousands of tokens are minted on platforms such as Pump.fun and SunPump. The two platforms have helped drive up Tron and Solana prices in recent times.Therefore, Wormhole needs to develop new use cases to leverage the widespread fragmented liquidity. That said, protocol currently supports more than 30 blockchains, giving it a strong muscle for a potential spike in the coming weeks and months.
Wormhole token momentum signals that the upside has recently lost momentum as seen on the 2-hour chart. The price is currently below the Volume Weighted Moving Average (VWMA), showing control by the sellers. Also, this is supported by the RSI reading at 44, which points to the downside. However, a stay above the psychological $0.2200 level could provide support for a potential reversal.
Meanwhile, the 30-minute chart supports movement to the upside above the 0.2240 pivot mark. With the buyers in control, the first resistance could come at 0.2270. However, if the upward momentum strengthens, it could break past that barrier and test 0.2300.
On the other hand, if resistance persists at 0.2240, it will favour the sellers to take control, and the first support will likely be at 0.2200. However, extended bearishness could break below that support, invalidate the upside narrative and send Wormhole price lower to test 0.2170.
This post was last modified on %s = human-readable time difference 12:49