5 months ago
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Wormhole (W) price held steady on Friday as sentiment in the crypto industry improved and as the developers launched staking features for the network. The token rose to a high of $0.718 on Friday, its highest swing since May 5th. It has soared by more than 35% from its lowest level in May.
Wormhole launches staking features
Wormhole’s biggest catalyst is the ongoing Bitcoin performance. The biggest cryptocurrency in the world has jumped to over $71,000, helped by the rising ETF inflows. All in all, Bitcoin ETFs have seen the longest streak of inflows on record. The iShares Bitcoin ETF (IBIT) has added over $20 billion in assets while the Fidelity Wise Origin Bitcoin Fund (FBTC) has crossed the $10 billion mark.
Wormhole has also benefited from the rising greed in the crypto industry as the fear and greed index has jumped to the greed area of 62. In most cases, many altcoins tend to do well when there is greed in the market. This explains why meme coins like Jasmy, Pepe, and Floki have surged to their highest levels on record.
Meanwhile, Wormhole price jumped after the developers launched staking features for governance. Wormhole token holders can now make deposits and start generating a return by delegating their tokens to any delegate if they want to give their voting power to a delegate.
Looking ahead, the next important catalyst for Wormhole and other tokens will be the upcoming US nonfarm payrolls (NFP) data. Economists expect the data to reveal that the economy added over 182k jobs in May while the unemployment rate remained at 3.9%.
These numbers are important because they will provide more information about the next Federal Reserve actions. While the Fed is not expected to cut interest rates next week, the NFP numbers will provide cues about when the cut will happen. Wormhole and other coins will likely do well if the jobs numbers disappoint.
For starters, Wormhole is one of the most popular platforms in the crypto industry. It makes it possible for developers to build multichain applications. For example, dApps created in Solana can communicate securely to those made in Ethereum using its platform.
Wormhole price forecast
The 4H chart shows that the Wormhole token price has staged a strong bull run in the past few weeks. It has jumped from a low of $0.513 on May 14th to over $0.718. The token has moved slightly above the crucial resistance point at $0.70.
It has moved above the 50-period and 25-period moving averages. Most importantly, the W token has formed a rising broadening wedge, a popular bearish reversal pattern. It is now hovering near the upper side of this wedge.
Therefore, there is a risk that the token will suffer a harsh reversal that could push it to the lower side of the wedge at $0.60.
The post Wormhole price analysis: broadening wedge pattern forms appeared first on Invezz
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