Wormhole's Coinbase Listing Looms, But Bearish Signs Flash Red

Hold onto your hats, crypto fans! Wormhole is on the brink of a bearish reversal, with technical indicators screaming "danger ahead" just days before its Coinbase listing. This could be a wild ride!

In a shocking Tuesday reveal, Coinbase dropped the bomb that they'll be listing Wormhole (W) on July 2 as an SPL token on the Solana network. You heard it right, folks!

Now, usually, a big exchange listing like this sends the bulls charging, but not this time. Wormhole's been struggling to get investors hyped up for the event. It's like trying to light a wet match!

And if that wasn't enough, Wormhole just teamed up with Ripple Labs for a strategic partnership that's supposed to beef up multi-chain action with the XRP Ledger and its EVM-compatible sidechain. They're talking cross-chain messaging, asset transfers, and multi-chain token issuance. Sounds fancy, right? But guess what?

All these big moves haven't done squat for investor vibes. Wormhole's price is still in the dumps, down a whopping 77.6% year-to-date. It hit rock bottom at $0.051 on June 22 and has only clawed its way back to $0.071 as we speak. Ouch!

To make matters worse, most investors are drowning in red, and a handful of whales are hoarding the lion's share of tokens. It's like a ticking time bomb!

IntoTheBlock's data is screaming that 92% of Wormhole addresses are bleeding losses, while 88% of the circulating supply is locked up by these whales. If they decide to dump, it could send prices into a tailspin, making things even more volatile.

And if that's not enough to spook you, Nansen's numbers show that even influencers and big names are bailing on their Wormhole stash over the past week. When the big shots start running, it's a sure sign that retail investors are gonna follow suit, piling on the selling pressure and leaving the market gasping for air.

W price analysis

Let's dive into the nitty-gritty of Wormhole's market structure, and boy, is it a mess! We're seeing a bearish pattern forming that's got traders on edge.

On the 4-hour W/USDT chart, the token just smashed through the lower boundary of an ascending broadening wedge. This volatile and bearish setup has been building since the token's last low, and it's not looking good.

An ascending broadening wedge is like a warning sign that markets are losing their cool and direction. When it breaks down below the lower trendline, it's a red flag that bearish forces are taking over, and a bigger drop might be on the way.

The momentum indicators are backing up this gloomy outlook. The MACD lines have crossed down, and the Relative Strength Index has slumped back to neutral at 50. It's like the bulls have thrown in the towel, and the sellers are ready to rumble. Even the Chaikin Money Flow is flashing negative.

With all this going on, W might be headed back to test the $0.066 level, which lines up with the 23.6% Fibonacci retracement zone. If it can't hold there, we could see even more losses, maybe even a revisit to that brutal all-time low of $0.051.

This could be a temporary safe haven if the selling cools off. But if it can't stay above it, buckle up for a deeper price dive.

Disclosure: Hey, this isn't investment advice, just some wild crypto news! Take it as you will, but always do your own research, folks!