Market Overview for WalletConnect Token/BNB (WCTBNB) on 2025-10-07

• WCTBNB dropped from 0.0002102 to 0.0001903 over 24 hours, forming a bearish trend.
• A notable bearish engulfing pattern emerged after 18:00 ET.
• RSI indicates oversold conditions, but price continues to fall.
• Low volatility seen during 16:00–19:00 ET with multiple zero-volume candles.
• Bollinger Bands suggest compression early in the session, followed by expansion.

The WCTBNB pair opened at 0.0002102 on 2025-10-06 at 12:00 ET, reached a high of 0.0002106, and a low of 0.0001873, closing at 0.0001903 on 2025-10-07 at 12:00 ET. Total volume was 18,947.4, with a turnover of 3.509 (amount). The pair exhibited a prolonged bearish momentum, driven by consistent selling pressure after 18:00 ET.

Structure & Formations

Key support levels emerged at 0.0002085, 0.0002072, and 0.0001903. A bearish engulfing pattern formed around 18:00–19:15 ET, confirming a reversal from earlier consolidation. A doji occurred at 20:30 ET, indicating indecision before the downward break. The price action suggests a breakdown from a consolidation range between 0.0002085 and 0.0002106.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs crossed below the price at 18:00 ET, signaling bearish momentum. The 200-period SMA on daily data would likely sit above the 24-hour close, reinforcing a bearish trend. However, short-term traders should watch for any retesting of the 0.0001903 level for potential support.

MACD & RSI

MACD crossed below the signal line at 18:30 ET, confirming bearish momentum. RSI hit the 30–35 range by 10:00 ET, indicating oversold conditions, yet the price continued to fall. This divergence suggests the sell-off may not be over and could continue in the near term.

Bollinger Bands

Bollinger Bands experienced a tightening from 16:00 to 18:00 ET, followed by a break below the lower band at 19:00 ET. This expansion marked increased volatility and a clear bearish breakout. Prices have since traded within the lower half of the bands, signaling continued bearish pressure and low volatility.

Volume & Turnover

Volume was unusually low during 16:00–19:00 ET, with multiple zero-volume candles, suggesting a period of consolidation. After 19:00 ET, volume surged with large trades, confirming the bearish breakout. Notional turnover also spiked as the price dropped, aligning with the volume increase. However, the divergence between RSI and price action raises the possibility of a deeper correction or false recovery.

Fibonacci Retracements

Applying Fibonacci to the 0.0002106 to 0.0001903 swing, the 61.8% retracement level is at 0.0001988, which was tested around 11:15 ET. The 38.2% retracement level at 0.0002047 saw some rejection, but the price failed to hold and continued lower. These levels may act as potential areas for short-term bounces.

Backtest Hypothesis

The backtesting strategy focuses on identifying a bearish engulfing pattern followed by a volume surge and a breakdown below the 20-period SMA. A trade would be triggered on the 15-minute chart when the close of the engulfing candle is below the open of the preceding consolidation candle, with a stop placed above the high of the engulfing pattern and a target at the next Fibonacci level (38.2% retracement). Given the recent action, this strategy could have captured the 18:00–19:00 ET breakdown and the subsequent drop to 0.0001903. However, the RSI divergence indicates potential for a false recovery or extended bearish momentum.