Market Overview for Walrus/USDC (WALUSDC): Strong Bullish Momentum Amidst Expanding Volatility

• Walrus/USDC opened at $0.2374 and closed at $0.2636, forming a sharp upward trend over 24 hours.
• Price surged past key resistance levels, with high volume during the final 8 hours suggesting strong momentum.
• MACD and RSI show positive divergence, indicating potential continuation, though RSI is nearing overbought territory.
• Volatility expanded significantly after 10:00 PM ET, with Bollinger Bands widening and price near the upper band.
• A bullish engulfing pattern formed between 06:30–06:45 ET, confirming a reversal after a pullback in late-night trading.

24-Hour Price Action and Volume Profile

Walrus/USDC (WALUSDC) opened at $0.2374 on 2025-10-22 at 12:00 ET and closed at $0.2636 by 12:00 ET on 2025-10-23. The pair reached a high of $0.2758 and touched a low of $0.2240 during the 24-hour period. Total trading volume amounted to approximately 59,864,669.3 units, with notional turnover estimated at $15,474,993.6. Price surged with increasing momentum in the final hours, supported by elevated volume.

Structure & Formations

The 15-minute OHLCV data reveals a strong bullish bias. A notable bearish reversal pattern was seen early in the session, with a bearish engulfing candle forming around 8:00 PM ET as price dipped to a low of $0.2364. However, a strong rebound followed, forming a bullish engulfing pattern between 6:30–6:45 AM ET that marked a key reversal point. The pair then pushed higher, forming a strong upward trend, with no major bearish patterns observed during the rally. A morning session consolidation phase was followed by an aggressive breakout above key resistance levels.

Key Resistance and Support Levels

Notable resistance levels were breached throughout the session, with $0.2400 acting as a psychological barrier early on, followed by $0.2500 and $0.2600 in the late morning and early afternoon. A critical support level was identified near $0.2350, which held during the bearish pullback before the price rebounded strongly. A 61.8% Fibonacci retracement of the earlier bearish move aligned closely with this level, reinforcing its significance.

Technical Indicators

MACD turned bullish with a positive crossover around 8:00 PM ET, aligning with the first major reversal. RSI showed a strong bullish divergence, hitting overbought territory near 75–80 in the final hours, suggesting continued upward momentum may be at risk of a consolidation phase. Bollinger Bands expanded significantly after 10:00 PM ET, indicating rising volatility, with the price near the upper band at the close. The 20-period EMA crossed above the 50-period EMA, confirming a short-term bullish trend.

Volume and Turnover Analysis

Volume surged in the final hours of the session, with a spike of over 2.8 million units between 1:15–1:30 PM ET and another sharp increase around 3:15–3:30 PM ET as the price approached $0.2758. These volume surges confirmed strong buying interest. Notional turnover spiked to over $750,000 in two separate instances, supporting the price action. A divergence in volume and price occurred briefly in the 8:00–8:45 AM ET window, where volume was low despite a rising price, hinting at possible short-term exhaustion.

Volatility and Divergence

Despite the strong move higher, there were a few instances of volume divergence where price continued to rise on lower volume, particularly between 10:00–10:45 AM ET. These moments suggest potential overextension in the short term. However, the strong volume during the final 8 hours validates the recent rally and suggests strong conviction among traders.

Forward-Looking View and Risk Caveat

Walrus/USDC appears to be in a strong uptrend, supported by bullish patterns and increasing momentum. The price may test the next resistance level near $0.2800 in the coming 24 hours. However, caution is advised as RSI is approaching overbought levels, and the expansion in volatility may lead to a short-term pullback or consolidation before further gains.

Backtest Hypothesis

Given the identified bullish signals and key candlestick formations, a backtesting strategy could focus on capturing the continuation of the trend following a confirmed bullish reversal pattern such as the engulfing candle seen at 6:30–6:45 AM ET. The strategy would generate buy signals on confirmation of the pattern and hold for 3 days, benchmarking performance against a HOLD strategy from 2022-01-01 to 2025-10-23. To proceed accurately, we must confirm the correct symbol format and data source for “WALUSDC” to ensure the backtest aligns with the correct historical data.