Market Overview: World Liberty Financial/Tether (WLFIUSDT) — 2025-11-11

Summary
• Price dipped from a morning high of $0.1622 to a 24-hour low of $0.1496, closing at $0.1544.
• Volume surged in late morning and early afternoon, with total 24-hour volume at ~103 million.
• Turnover reached ~$16.1 million, with signs of distribution evident in the late session.

World Liberty Financial/Tether (WLFIUSDT) opened at $0.1569 on 2025-11-10 at 12:00 ET and closed at $0.1544 on 2025-11-11 at 12:00 ET. The 24-hour range spanned from a high of $0.1622 to a low of $0.1496. Total volume traded was approximately 103.3 million, with turnover standing at about $16.1 million.

Structure & Formations

Price action on WLFIUSDT showed a sharp bearish reversal after a midday high, with a key support level forming around $0.1523–0.1534, where multiple closes and rejection patterns clustered. A notable bearish engulfing pattern formed at $0.1606–0.1568, followed by a series of smaller bullish and bearish reversals in the late evening. A bearish divergence in price and volume is visible as price dipped below $0.1550 while volume failed to confirm the strength of bearish momentum.

Moving Averages

On the 15-minute chart, the price closed below both the 20-EMA (~$0.1562) and 50-EMA (~$0.1573), indicating short-term bearish bias. On the daily chart, price remains below the 50, 100, and 200-day moving averages, suggesting continued medium-term downside pressure. The 50-day MA at $0.1580 appears to be a key resistance for any near-term bullish bounce.

MACD & RSI

The 15-minute MACD crossed below the zero line in the late session, with a bearish histogram forming, signaling fading bullish momentum. RSI dropped to 38 by 11:00 PM, suggesting moderate oversold conditions but not strong enough to confirm a reversal. A reading above 50 would be needed to confirm a recovery.

Bollinger Bands

Price remained compressed within the Bollinger Band range for most of the day, with a notable contraction occurring just before the sharp decline to $0.1496. The closing price of $0.1544 sits slightly below the 20-period Bollinger Band middle line, suggesting a potential continuation of the downward move unless a sharp rally breaks the upper band near $0.1565.

Volume & Turnover

Volume spiked sharply in the late morning to early afternoon, with the largest single 15-minute candle (at $0.1606–0.1568) recording ~8.7 million volume. However, in the final hours of trading, volume declined despite the price drop, pointing to potential exhaustion among sellers. Turnover also peaked early, with the last two hours showing a decline despite aggressive price action, indicating weaker participation in the lower levels.

Fibonacci Retracements

The 24-hour move from $0.1622 to $0.1496 suggests a Fibonacci 38.2% retracement at $0.1554 and a 61.8% at $0.1523. The price closed near the 61.8% level, and a break below $0.1523 would target $0.1496 as the next likely level of interest.

Backtest Hypothesis

The backtest strategy outlined applies a simple candlestick-based trading system using Bullish and Bearish Engulfing patterns. The process begins by identifying bullish reversal signals and pairing them with subsequent bearish reversals to define trade entry and exit points. A stop-loss of 8% is applied to limit downside risk, aligning with standard conservative risk management practices. This approach is well-suited for volatile assets like WLFIUSDT, where price gaps and sharp swings often create clear entry and exit signals. The success of the strategy depends on the frequency and accuracy of the engulfing patterns and the asset’s response to them over time.