Wormhole Token Dives 50% Following Large-Scale Airdrop Fallout

Investors are disturbed as the Wormhole token dives 50% following large-scale airdrop fallout

Less than a week after it went live, Wormhole's native token, W, has taken a huge plunge, dropping more than 50%. At the time of writing, Wormhole token price is US$0.8142, with a market cap of US$1.47 billion, and a trading volume of just over US$274 million.

W has lost most of its value in the last week, dropping only 4.5% in the last 24 hours since it was announced at the start of last month as Wormhole's first native governance token airdrop. DeFi circles were quick to jump on the bandwagon, especially because the offering was so widespread: since Wormhole lets users bridge tokens across different blockchains, wallet holders across more than 30 networks, including Ethereum and Solana, as well as Avalanche and Sui, were able to collect W tokens for free.

In total, over 400,000 wallets could have taken advantage of the airdropped tokens, including Solana wallet, exchange, and aggregator Backpack, Jupiter, NFT holders Mad Lads and Yoots, DeGods, and even active Wormhole Discord participants.

W finally went live last week as a Solana-native token that was connected to other blockchain systems using Wormhole technology. Flipside reported that more than 37k wallets claimed W within the first few minutes of airdropping the token, and it briefly topped US$3 billion in market cap.

However, the token's initial surge is fading. The Wormhole token currently has a market capitalization of 1.47 billion dollars. Currently, only 1.8 billion tokens are in initial circulation. However, according to the coin's roadmap, the supply of W tokens will eventually reach 10 billion.

Price Analysis

Wormhole price is currently trading at US$0.801. Wormhole's Relative Strength Index (RSI) is 40.57, suggesting a bullish trend. Wormhole's support level is around US$0.795 and the next major support is US$0.784, while Wormhole's resistance level is around US$0.843 and the next major resistance is US$0.849. The 20-day simple movie average is US$0.8140.

A breakout from the above-mentioned resistances could flip Wormhole price prediction bullish once again. However a breakdown below $0.79 will be extremely bearish for the price in the near term.