Market Overview for WAX/Tether (WAXPUSDT): 24-Hour Analysis

Summary
• WAXPUSDT traded in a descending pattern, breaking below key support of 0.01095.
• Volume surged in the early morning hours, signaling renewed bearish pressure.
• Momentum indicators point to an oversold condition, hinting at potential bounce.

WAXPUSDT opened at 0.01096 on 2025-11-03 12:00 ET, hit a high of 0.0111, and closed at 0.01040 on 2025-11-04 12:00 ET, after testing a low of 0.01025. Total volume for the 24-hour period was approximately 42,871,218.0 units, with a notional turnover of $455,683.45.

Over the past day, WAXPUSDT has shown a clear bearish bias with multiple intraday breakdowns below key psychological levels. A strong rejection above the 0.01095 support level in the afternoon hours indicated short-term capitulation, leading to a continued slide toward 0.01025. Price action suggests exhaustion in the longs and growing dominance by short-side liquidity takers.

Candlestick formations include multiple bearish engulfing patterns after the 0.01095 level, with a doji near 0.01029 suggesting a temporary pause in the downward move. The 20-period and 50-period moving averages remain above price, reinforcing a downtrend. Meanwhile, the 200-period MA is still acting as a long-term resistance, indicating that the broader trend remains bearish.

The RSI has dipped below 30 into oversold territory, but without a clear reversal pattern, this may be more indicative of a bear trap than a bottoming signal. MACD remains negative with the histogram widening, suggesting continued short-term bearish momentum. Bollinger Bands have seen a modest expansion, and price has remained well below the lower band, reinforcing low volatility and bearish consolidation.

Structure & Formations

Key support levels to watch include 0.01040 and 0.01025, while resistance is likely at 0.01071 and 0.01095. A bullish reversal pattern could form if the price breaks above 0.01040 with strong volume, but a further decline to 0.01020 is a possibility if selling pressure continues.

Volume & Turnover

Volume spiked significantly between 05:30–06:15 ET, correlating with a sharp drop in price. This suggests a possible liquidation event. However, the lack of follow-through in turnover after the 0.01029 doji suggests some short-term exhaustion in the bearish move.

Backtest Hypothesis

A potential backtest could examine the RSI-oversold strategy (e.g., entering a long position when RSI dips below 30 and exits above 70) applied to WAXPUSDT. While the RSI currently sits in oversold territory, the absence of a reversal pattern and the weak price action suggest this strategy may face challenges without confirmation from volume and price structure. Future testing with a corrected symbol or an alternative data source could offer more clarity on the effectiveness of this strategy over a 5-day period starting from 2022-01-01.

Given the current structure, a short-term bounce is possible, but without strong volume confirmation above 0.01040, the bearish trend may persist. Investors should watch for a breakdown below 0.01025, which could trigger more aggressive selling and extend the decline.