Wormhole (W) has seen a dramatic spike in trading volume, reaching $500 million following its debut on the major South Korean exchange Upbit. The listing came amid an unfavorable market condition that saw liquidated million in the last 24 hours.

Despite that, the development generated significant market excitement, driving a surge in Wormhole’s price. This analysis examines the impact of the listing and what traders can expect as Wormhole gains traction in the market.

Asia Support for Wormhole Drives Massive Volume

At press time, Wormhole’s price is  $0.37, representing a 25% increase in the last 24 hours. This surge was the result of Upbit’s decision to list the token, which is the native cryptocurrency of the multi-chain interoperability network.

According to Upbit’s announcement, W will be paired with the Korean Won (KRW), Bitcoin (BTC), and Tether (USDT). Before the disclosure, Wormhole’s volume was less than $100 million. However, as of this writing, it has hit $550 million.

This incredible rise in volume indicates the Asian region, particularly the South Korean market, bought W as soon as it was listed on Upbit. From a trading perspective, this surge, alongside the price increase, is a bullish sign.

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Thus, if Wormhole’s price continues to climb and the volume does the same, then the price could trade much higher than $0.37. Besides that, on-chain data from Santiment revealed that the sentiment around the project has turned notably bullish.

The image below shows the surge using the weighted sentiment metric. This incredible rise implies a significant dominance of positive comments about W on several social media platforms. If sustained, W’s price could surpass $0.37, as initially stated.

W Price Prediction: Rally Not Done

Wormhole’s price touched an all-time low of $0.16 on August 5, four months after the April Wormhole airdrop. Weeks later, the altcoin reached $0.26, but again, Wormhole’s price decreased until September 18.

It was at this point that the W token broke out of the descending triangle. Over the last three weeks, W’s value has increased by over 90%. A look at the Chaikin Money Flow (CMF), which measures accumulation and distribution, shows an increase.

A decrease in the  CMF implies distribution and price might decrease. But since it is the other way around, it means that buying pressure outweighs whatever sellers are doing.

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Should this continue, Wormhole’s price could jump toward $0.45 and possibly $0.52 in the short term. On the other hand, the altcoin’s price might revert if distribution takes over. If that happens, W’s value could drop to $0.29.

Worldcoin (WLD) price has seen a sharp decline, dropping 20% in the past week amid growing bearish sentiment. Further fueling concerns, the FTX estate is set to sell a large batch of locked WLD tokens at a significant discount.

That could increase selling pressure and negatively impact the token’s price. Combined with technical indicators pointing toward a downtrend, WLD is facing challenges in regaining its previous market excitement.

WLD Social Dominance Dropped 78% In The Last 7 Days

WLD’s 7-day Social Dominance Moving Average has plummeted to 0.132%, a stark contrast to the 0.60% observed on September 25. This previous high in social dominance coincided with WLD’s price surge to $2.15, marking its highest level since August 1.

Social dominance reflects the percentage of attention and discussion a coin receives across social media platforms compared to other assets. The sharp decline in WLD’s social presence could signal that the hype surrounding the token is fading.

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This is especially evident when considering that WLD has dropped -53.20% year-to-date, its market cap has fallen below $1 billion, and it has lost a staggering -85.57% from its all-time high.

These factors combined suggest that WLD may be losing momentum, struggling to recapture the excitement it once generated in the market.

FTX Estate Will Sell Worldcoin at a Discount

The FTX estate’s auction of 22.3 million locked Worldcoin tokens, valued at around $37.7 million, could seriously impact WLD’s market price by introducing downward pressure. That’s especially important because the proposed discounts range from 40% to 75% off the current market price of $1.69. The selling is set to begin today, October 2.

Offering such a large batch of tokens at a steep discount could dampen market sentiment. It may signal to investors that the token is being offloaded at a lower valuation, potentially driving expectations of further price declines.

This substantial discount also introduces the possibility of undercutting the token’s spot price, as buyers in the auction would be acquiring WLD tokens at a significantly reduced cost compared to the open market. That could lead to sell-offs once these tokens become liquid, further pushing down the price.

Furthermore, the extended lockup period, with tokens unlocking daily through 2028, may create added uncertainty among investors about the token’s future liquidity. With only a limited number of tokens unlocking each day, there could be concerns about the available supply and whether future demand will be strong enough to absorb the gradual influx of newly unlocked tokens.

WLD Price Prediction: Is a Strong Downtrend Inevitable?

WLD recently experienced a golden cross in its EMA lines, where the shorter EMA crossed above the longer EMA, sparking a price increase from $1.53 to $2.18 between September 23 and September 26. EMA (Exponential Moving Average) lines are indicators that give more weight to recent price data, allowing traders to identify trends faster than simple moving averages.

However, despite this initial bullish signal, WLD has dropped 20% over the past 7 days. Now, the shorter EMA is beginning to cross down below the longer ones. That is considered a bearish signal, as it suggests the momentum is shifting from buyers to sellers.

Read more: Worldcoin (WLD) Price Prediction 2024/2025/2030

Combined with the FTX estate’s auction of WLD tokens and the recent drop in social dominance, WLD could be entering a stronger downtrend. Its next key support lies around $1.51, and if the selling pressure continues, it could fall as low as $1.28.

However, if WLD manages to bounce back, it may test resistances at $1.84 or $1.98. Should these levels be broken, it could trigger a rally up to $2.47, marking its highest price since late July.