Reviewed by Reviewed by Renuka Tahelyani Updated 08:00 EDT October 8, 2026 Share Share Share Back to Top Wormhole [W] surged 27% over the past 24 hours as bulls maintained their strong hold on price
While the rally showed strong momentum, there were risks ahead. Technical indicators pointed to stretched conditions, even as spot buying strengthened
Bollinger Bands track price movements around a moving average, with their upper and lower bands reflecting volatility
W crypto token traded above the upper red band, showing that price had stretched beyond its recent trading range
This could raise concerns about a pullback, although trading above the band can also accompany a strong trend
The Relative Strength Index (RSI) carried a similar warning. It stood at roughly 78.03, above the 70 threshold associated with overbought conditions
In other words, momentum remained strong, but buyers were entering after a sharp advance. Neither indicator establishes that a reversal will follow. They reflect recent price activity rather than determining the asset’s long-term outlook
That left spot demand as another test of the rally’s staying power
The spot market offered a more supportive picture. On the 7th of October, Spot Netflow recorded a positive $226,620, according to CoinGlass
This metric measures buy volume minus sell volume. A positive reading indicated that buying outweighed selling across the tracked markets
At the time of writing on the 8th of October, positive Spot Netflow reached roughly $567,000. These readings suggested that buyers continued supporting the price rally, even as the RSI flagged overbought conditions
For now, bulls had demand behind them. A pullback could become more likely if that buying weakened and selling gained ground
The Liquidation Heatmap showed scattered clusters, with several visible concentrations below the current price. These marked estimated levels where leveraged positions could face liquidation
If W declined toward those levels, long liquidations could add forced selling and deepen the pullback. However, their presence alone does not establish that price will fall toward them
For now, traders face a rally supported by spot buying, alongside stretched momentum and potential liquidation risk below price
Olayiwola Dolapo is a Crypto Research Analyst at AMBCrypto, driven by a mission to make the digital asset space more transparent and understandable for all. His journey was catalyzed by an early experience in the market that underscored the importance of deep, foundational knowledge—a principle that now guides his professional work
