Market Overview for WAX/Tether (WAXPUSDT): Volatility and Reversal Signs Emerge

Summary
• Price declined to a 24-hour low of $0.0076 before bouncing.
• High volume during the late ET sell-off suggests strong bear pressure.
• RSI and MACD indicate oversold conditions, hinting at potential reversal.
• Bollinger Bands show a recent contraction, suggesting low volatility.
• A bullish engulfing pattern appears after the decline, signaling possible reversal.

WAX/Tether (WAXPUSDT) opened at $0.0079 on 2025-12-16 at 12:00 ET, reached a high of $0.00801, and closed at $0.00768 by 12:00 ET on 2025-12-17. The pair traded within a range of $0.0076 to $0.00801, with a total volume of 11,196,227.0 and notional turnover of approximately $86,400 (calculated from OHLC and volume data).

Structure & Formations

The 24-hour chart shows a bearish trend with a sharp sell-off beginning in the late ET session, pushing prices below key support levels. A notable bullish engulfing pattern formed after the low at $0.0076, which could signal a short-term reversal. The formation occurred near a prior swing low and Fibonacci 61.8% retracement level from the $0.0076 to $0.00801 swing, increasing its significance.

Moving Averages

On the 5-minute chart, prices closed below both the 20-period and 50-period moving averages, indicating bearish momentum. Daily moving averages (50/100/200) remain uncalculated for the current data but appear to be in a bearish alignment if the trend continues into the next day.

MACD & RSI

MACD turned bearish after crossing below the signal line during the sell-off, reinforcing the downside move. RSI reached levels below 30 during the decline, indicating oversold conditions and suggesting a potential bounce.

Bollinger Bands

Bollinger Bands showed a contraction during the early part of the session, followed by a sharp expansion during the sell-off. Prices currently sit near the lower band, supporting the idea of oversold conditions and potential reversal.

Volume & Turnover

Volume spiked sharply in the late ET hours during the sell-off, confirming the bearish move. However, the bullish engulfing pattern was accompanied by moderate volume, suggesting the reversal may lack strong conviction.

Fibonacci Retracements

Fibonacci retracements drawn from the $0.0076 to $0.00801 range indicate key support at the 61.8% level ($0.00777), which was tested and broken in the late ET session. A rebound off the 50% retracement level ($0.0078) could offer a near-term buy opportunity.

Prices appear to have found short-term support near $0.0076 with a possible rebound ahead. However, risks remain on the downside if the $0.0076 level fails to hold. Investors should watch for a breakout above $0.00785 for a more definitive reversal.