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Wormhole has finally distributed its new W token, and after a volatile open, W price is now consolidating, but with freshly minted airdrop holders asking ‘Should You Sell Wormhole Airdrop?’ dig into Wormhole price analysis and find out.
All eyes were on the Wormhole Airdrop this Wednesday as its governance W token made a splash – but as trading opened – all hell broke loose.
After briefly hitting $1.66, W token slid down to $1.31, marking a -20% dip on its highly anticipated debut day.
Currently, W token is down -10.14% on the day at a price of $1.10, and investors are now speculating whether the airdrop mechanics were poorly planned or if scammers could take advantage of it. Either way, the airdrop is being deemed a failure by some in the crypto community.
But despite these criticisms, it is not unusual for airdropped tokens to face an initial wall of selling pressure, so let us unpack the ongoing W price action and investigate Wormhole’s capricious debut and what it means for W token holders.
Here’s Why Some Are Branding Wormhole Airdrop a Failure
At its heart, Wormhole is a cross-chain bridge project facilitating the seamless transfer of crypto assets between various blockchains, you can think of it as the digital world’s equivalent of a universal adapter, making it easier for different blockchains to communicate.
Wormhole is a good project, and this focus gives the project a strong fundamental role in the crypto ecosystem – indeed, it’s already the leading interoperability platform, working with teams like Circle and Uniswap.
So when they announced that 617.3 million W tokens would be distributed on Solana to reward early birds, it seemed like they would further boost their credibility. But instead, many committed holders have been rekt (for now).
Over 400,000 wallets received W tokens – currently, most are in the red.
While Airdop had a promising start, W’s market cap tumbled from a nearly $3 billion peak to $2 billion in a matter of hours. It now stands at $1.74 billion.
Wormhole Price Analysis: What’s Next For New W Token?
(WUSDT)
With price action slowly grinding down amid ongoing sell-pressure, the W token is currently trading at a market price of $0.96 (representing a 24-hour change of -10.5%)
This comes after price action hammered +3795% in its opening hour, which saw an initial all-time high established at $1.86.
Now, in retracement, W token holders are targeting a return above $1 after mounting a well-defended support at $0.95.
The RSI has cooled off significantly amid the consolidation and now reads low at 38 – suggesting upside movements could resume soon.
Indeed, this is matched with a surprising bullish divergence on the MACD, which stands at 0.005.
Overall, the strong performance by Wormhole holders has set the stage for a return to the upside in the near future.
Should You Sell Your Wormhole Tokens?
No? Yes? Maybe? Some staunch supporters of Wormhole have taken to X to write that the tech, hype, and community are very strong and ubiquitous for W – in an effort to spotlight that despite the initial sell-off W still has strong potential.
Moreover, Wormhole’s staking feature, which is launching soon, adds to its long-term value.
The price action is also signaling a reversal:
However, investors are exercising caution – with great launches come great scammer interest.
Because of its fluctuating popularity, the W token has become a target for phishing scams, leading to negative publicity and warnings from on-chain detectives like ZachXBT.
After all, during the first quarter of 2024 crypto scammers stole over $64 million.
The Bottom Line: Should You Sell Wormhole Airdrop?
Despite the initial price dip and phishing scare, Wormhole’s ambitious vision of connecting disparate blockchain ecosystems remains compelling.
After launching, trading volumes surpassed $1.6 billion in just 24 hours, indicating intense interest in Wormhole and its W token.
It’s also important to remember that most airdrop tokens such as Arbitrum have endured substantial retracements following distribution, only to latter mount exceptional rallies.
So, as the dust settles on the launch and airdrop frenzy, it remains likely that W token and W price will rebound – suggesting that if you believe in the long-term value of the project it remains a strong hodl.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
