Wormhole Shows Signs of Reversal After Deep Correction

Wormhole’s $W shows bullish divergences across multiple timeframes, signaling a possible trend reversal after heavy correction.

Despite a steep decline, institutional adoption and Solana integration support $W’s long-term value and cross-chain relevance.

Sideways trading, rising RSI, and volume uptick near lows suggest $W is entering a potential accumulation and bottoming phase.

Wormhole’s native token, $W, may be entering a phase of accumulation after a prolonged downtrend. On the 3-Day chart, $W/BTC has fallen from its early April 2024 peak of 0.00000900 BTC to a mid-June 2025 low of 0.00000027 BTC. This sharp decline came with reduced volume and waning interest. However, technical indicators and structural patterns now suggest a potential bottom formation is underway. Notably, bullish divergences are emerging across several key timeframes.

Besides the price action, Wormhole's adoption remains strong. Major institutions like BlackRock, Apollo, and VanEck have integrated Wormhole for cross-chain bridging. Additionally, Solana’s adoption of the protocol boosts on-chain activity and volume. Wormhole’s recent activation of fee switches is expected to improve long-term protocol revenue. Consequently, these fundamentals offer a bullish counterbalance to its recent price weakness.

Bullish Divergence Across Multiple Timeframes

The $W/BTC chart reveals persistent lower highs and lower lows, typical of a deep corrective phase. Yet, the recent sideways consolidation near 0.00000027 BTC signals potential stabilization. Moreover, the Relative Strength Index (RSI) on the 3-Day timeframe shows a bullish divergence. Price continues to fall while the RSI begins to trend higher. This mismatch between momentum and price action often signals a shift in trend.

Source: Michael van de Poppe

Additionally, the bullish divergence appears on Weekly and Daily timeframes. Such multi-timeframe alignment adds further credibility to the reversal thesis. Traders typically view these divergences as early indicators of accumulation or a possible bottoming phase. Hence, this confluence of signals strengthens the likelihood of an incoming breakout.

Market Behavior Suggests Accumulation Phase

Recent candlesticks display tighter ranges and increased volume near the lows. These features often precede bullish reversals after long downtrends. Furthermore, a note states, “Bottoming procedure is happening on the asset.” This aligns with price flattening and volume stability.

However, confirmation is still needed. A breakout or spike in volume would solidify the reversal thesis. Until then, investors remain cautious but hopeful. Wormhole’s fundamentals continue to improve despite short-term price pain. That long-term strength supports the case for a sustained recovery once momentum shifts.

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