Market Overview for Dogwifhat/Tether (WIFUSDT)

Summary
• Price action suggests bearish exhaustion with a key support level forming near 0.385.
• Rising volume and declining price signal potential short-term reversal risks.
• RSI and MACD indicate oversold conditions, hinting at possible near-term buying interest.
• Volatility expanded significantly during the overnight session, with price testing lower Fibonacci levels.
• A bullish engulfing pattern formed near 0.388, suggesting limited downside potential for now.

Market Overview

At 12:00 ET on 2026-01-08, Dogwifhat/Tether (WIFUSDT) opened at 0.395, reaching a high of 0.400 and a low of 0.373 before closing at 0.383. The pair recorded a 24-hour volume of 20,558,631.23 and a notional turnover of 7,822,214.09.

Structure and Candlestick Patterns

Price consolidated between key support at 0.385 and resistance near 0.395, with a bullish engulfing pattern forming near 0.388. This suggests a short-term reversal may be in play if buyers step in. A long lower shadow at 0.382 also hints at a possible support hold.

Moving Averages and Momentum

On the 5-minute chart, the price closed below the 20-period and 50-period moving averages, indicating a bearish bias in the short term. However, RSI dipping into oversold territory (below 30) implies potential for a near-term rebound. The MACD crossed into negative territory but is flattening, suggesting momentum may be slowing.

Volatility and Fibonacci Levels

Volatility expanded overnight, with Bollinger Bands widening significantly, especially between 0.381 and 0.395. Price action found a temporary floor near 0.373, testing the 61.8% Fibonacci level of the previous 5-minute rally. This suggests a deeper pullback may be limited unless the 0.385 level breaks.

Looking ahead, buyers may test 0.385 as a key near-term support. A break below this level could trigger a test of 0.378, while a retest of the 0.392–0.395 range may attract short-covering and cautious longs. Investors should remain alert to increased volatility and divergences in volume if prices stall near critical levels.