Wormhole’s native token, W, is showing signs of strength after months of consolidation, breaking above its 20-day and weekly 20-moving averages for the first time in 18 months.
The breakout comes amid renewed optimism in the project’s ecosystem, supported by a sweeping upgrade to its tokenomics framework.
Technical Breakout After Long Consolidation
At press time, W trades around $0.112, up more than 13% on the day, marking one of its strongest single-day moves in recent months.
Technical analysts point to the token’s push through the 20-MA as a potential trigger for further momentum, with liquidity targets above $0.16 and a possible run toward the $0.18–0.20 zone. The Relative Strength Index (RSI) has climbed above 70, reflecting increased buying pressure.
Analysts Signal Potential Trend Reversal
The rally follows commentary from Michaël van de Poppe, who noted that W’s reclaim of the weekly moving average could set the stage for a “big move in the coming weeks.”
After prolonged sideways action, traders are now eyeing the possibility of a trend reversal that could attract more liquidity back into the Wormhole ecosystem.
Strategic Wormhole Reserve Introduced
Adding fuel to the narrative, Wormhole recently unveiled a major redesign of its tokenomics under the banner of the Strategic Wormhole Reserve. The system consolidates revenues across the ecosystem, including the Wormhole Portal and connected applications, into a single hub that will fund staking and governance incentives. Rewards are expected to remain sustainable through real protocol revenues rather than inflation, with baseline staking yields targeted at 4%.
Addressing Token Unlock Concerns
The overhaul also addresses a long-standing concern: large token unlocks. Instead of annual cliff releases that often pressured the market, W will move to smaller biweekly unlocks, creating a smoother supply schedule. With the total supply capped at 10 billion tokens, the upgrade is intended to bolster long-term stability while aligning incentives across guardian nodes, community backers, and strategic partners.
Benefits for Users and Developers
For developers and active users, the new structure promises additional benefits. Portal users can boost staking yields through a points-based system, while tokens allocated to core developers remain locked by contract, emphasizing Wormhole’s commitment to sustainable growth and ecosystem alignment.
Outlook Ahead
The redesigned tokenomics are slated to go live in October, and with W now testing technical resistance, both traders and long-term backers will be watching closely to see if the combination of chart strength and economic restructuring can propel the token into a new phase of adoption.
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Source: https://coindoo.com/market/wormholes-w-token-surges-past-key-levels-ahead-of-tokenomics-overhaul/