Wormhole Continues to Suffer Losses, But a Bullish Reversal is Possible

Wormhole (W) faced significant market pressure, losing about 10% in the last 24 hours. Over the past week, the asset has dropped by 24%. CoinGlass data shows that the decline is driven by actions of large holders – whales, although the possibility of recovery remains. The Whale Retail Delta indicator, which tracks who dominates price movement – whales or retail – stands at 0.323: it increased from the previous day and remains positive.

The decline was driven by whale actions on OKX: they took an extremely bearish position, and their selling volume outweighed purchases. On Bybit, whale activity was more neutral, while on Binance, whales were already accumulating the asset. Analysis of other metrics suggests that the recent downturn might have been a liquidity gathering maneuver: the price tends to move towards clusters above or below the current level. Currently, the liquidity cluster is above the price, increasing the likelihood of upward movement.

Sustainable growth will require a strong bullish impulse, but there is no clear confirmation of such sentiment yet – this increases the chances that the price will remain at the current level or move lower. The Funding Rate, indicating the dominance of long or short positions, confirms: short positions still prevail, although their volume has significantly decreased. Since September 14, the rate has changed from −0.0484% to −0.0083% – this indicates a gradual reduction of shorts and accumulation of bullish strength. If the trend continues, it could impact the price and add momentum for growth in the near term.