Wormhole [W] Drops 34% as Short Positions Build

Wormhole [W] fell 34% over the past day, CoinMarketCap data show, as broader market volume rose. In spot trading, higher volume alongside lower prices typically signals stronger selling pressure, a setup that warned the token downtrend could persist in the near term. The perpetual market told a different story. CoinGlass data showed perpetual volume above $1.06 billion in the past 24 hours. The Long/Short Ratio stood at 1.05, a moderate bullish tilt, and nearly 51% of volume over the past four hours favored longs. Spot traders were selling, but perpetual traders were not fully bearish. Positioning beneath the surface looked weaker. The Funding Rate fell to about 0.0436%, signaling an extreme short bias over the past 24 hours. Open Interest also shrank more than 48% to $71.47 million. Falling Open Interest during a price decline usually means traders are exiting or reducing exposure. With shorts crowded and capital leaving, the bearish setup looked fragile, though deeper losses could follow if sellers retain control. Sentiment remained slightly positive despite the selloff. The Sentiment metric, which tracks investor outlook, stood at 1.89, still in positive territory. It had reached 4.09 on Oct. 12, showing bullish expectations had cooled sharply. Positive sentiment suggests traders could still return to long positions. The Funding Rate and Open Interest data call for caution. Wormhole [W] is caught between two signals: traders see recovery potential, while shorts control immediate pressure. Final Summary: Wormhole [W] slid 34% as spot selling increased. The Long/Short Ratio stayed mildly bullish at 1.05. Funding Rate dropped to 0.0436%, and Open Interest fell 48% to $71.47 million.