Wormhole’s price outlook turns bearish following HyperEVM integration rally

The price surge of Wormhole (W) has diminished as Bitcoin’s weakness drags the cryptocurrency market lower. A technical analysis reveals a bearish momentum, with support at $0.08 under pressure. However, the launch of HyperEVM on the Wormhole platform is expected to enhance cross-chain liquidity and developer adoption.

HyperEVM Integration Expands Wormhole’s Reach

The launch of HyperEVM marks a significant milestone in Wormhole’s long-term ecosystem strategy. HyperEVM introduces EVM compatibility directly into Hyperliquid, a high-performance Layer 1 blockchain capable of processing 200,000 orders per second with billions in daily transaction volume.

By integrating with Wormhole, HyperEVM facilitates access to cross-chain liquidity, allowing developers to deploy ERC-20 tokens and interact with HyperCore’s deep order books. Users can now move assets seamlessly between HyperEVM and the over 40 blockchains supported by Wormhole through the Wormhole portal.

Developers can implement token transfers into their applications with just a few lines of code using Wormhole Connect.

Fading Rally

The market’s initial reaction to the HyperEVM announcement was robust. On August 29, Wormhole surged over 33% within hours, climbing from $0.079 to $0.106 as traders rushed to capitalize on long-term gains stemming from the integration’s unlocking of asset transfers across 40+ blockchains.

However, this enthusiasm was short-lived. As Bitcoin (BTC) fell below $110,000, Wormhole lost momentum, sliding toward the $0.08 support zone. By the market’s close, much of its intraday gains had evaporated, with a strong rejection from the mid-resistance level of $0.085 highlighting the fragility of the rally.

Technical Analysis: Warning Signs Flashing

Price charts confirm that Wormhole (W) continues to face significant bearish pressure. On a weekly basis, the token has failed to surpass its swing highs, with resistance near $0.104 and support at $0.054.

Since April, it has reached new lows, leaving its broader market structure tilted to the downside. The daily chart illustrates a trading range defined between $0.071 and $0.098. As volatility increases, momentum indicators are pointing downward for bulls.

The Chaikin Money Flow (CMF) remains negative at -0.21, indicating constant capital outflows from the market. The Awesome Oscillator also indicates diminishing bearish momentum, while the stochastic RSI approaches overbought conditions, which could signal another downward move.

Short-term action appears equally cautious. On the two-hour chart, Wormhole (W) hovers above the $0.08 order block, a level that recently served as the base for its rally. If the $0.08 support breaks, a move toward the lower end of the range near $0.071 becomes increasingly likely.

Derivatives Show Retail Optimism, but Risks Linger

Data from Coinglass reveals an interesting balance between retail traders and institutional accounts. Overall trading volume for W derivatives has plummeted by 48% to $532 million, although open interest has slightly increased to $75 million.

Additionally, the global long/short ratio stands below parity at 0.95, reflecting a slight bearish bias. However, on exchanges like Binance and OKX, account ratios have demonstrated a clear trend toward long positions, with retail traders largely positioned for a rebound.

Conversely, positions among major traders appear nearly balanced, suggesting hedging rather than strong conviction. This divergence makes retail long positions vulnerable if the overarching bearish trend continues.