The #Wormhole protocol, a leading communication protocol between cryptocurrency chains, shows strong recovery signs, having risen by 45% from its annual low after a partnership with #RippleLabs that boosted investor confidence. With increasing user activity, total value locked, and open interest, the momentum is in favor of Wormhole - but weak temporary trading volume and the downward trend in funding rates pose imminent threats to the sustainability of this rise.

$w rose to $0.076 on Saturday, its highest level since June 11. The price of the token surged after the company partnered with Ripple Labs. This integration will enable multi-chain interoperability with XRP Ledger and XRPPL EVM Sidechain.

This partnership will enable cross-chain messaging, asset transfers, and multi-chain token issuance. This, in turn, will make $XRP

Ledger is a key player in the decentralized finance and real-world asset tokenization sectors.

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The value of the Wormhole currency also increased as the number of active users rose this month. Its user count grew to 47,600 this month, up from a low of 38,000 last month. It jumped to its highest level since April.

The total value locked on $WOO jumped to $2.8 billion, up from $2.5 billion in March.

The price of Wormhole also rose as open interest increased to $30 million, its highest level since March 24. An increase in open interest is a sign of demand from investors in the futures market.

However, the ongoing rise faces two main risks. First, the weighted funding rate turned negative in the last two days, indicating that investors expect the future price to be lower than the current price.

The other risk is the declining trading volume on the bridge in recent months. Its trading volume dropped to $426 million this month, compared to $2.48 billion in December.

Wormhole Price Analysis

W Price Chart |

The daily chart indicates that the W token reached its bottom at $0.051 on June 23, then rebounded to $0.074. It formed a double bottom pattern, with a neck line at $0.01180, which is its highest level on May 14. The double bottom is one of the most bullish patterns in technical analysis.

Wormhole is attempting to break through the 50-day moving average, while the Relative Strength Index has crossed the neutral mark at 50. The MACD lines have recorded a bullish crossover.

Therefore, the price may continue to rise, targeting the double bottom neck line at $0.1180. A drop below the year-to-date low of $0.0511 would invalidate the bullish outlook.

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