Market Overview: World Liberty Financial/Tether (WLFIUSDT) – 24-Hour Summary

• Price declined from $0.2062 to $0.1978 amid strong bearish momentum and high volatility.
• RSI signaled overbought conditions early before a sharp sell-off.
• Volume surged on the downside, confirming bearish sentiment.
• Key support levels were tested at $0.2000–$0.1995, with a breakdown below $0.1980.
• Bollinger Bands showed a period of contraction followed by expansion, signaling a directional breakout.

World Liberty Financial/Tether (WLFIUSDT) opened at $0.2027 on 2025-10-03 at 12:00 ET and closed at $0.1978 on 2025-10-04 at 12:00 ET, with a high of $0.2063 and a low of $0.1967. The 24-hour volume was 102,221,644.9 and total turnover was $20,767,930.95. The pair exhibited significant bearish pressure following a breakout below key support levels.

Structure & Formations

The 15-minute chart displayed a bearish continuation pattern, including a bearish engulfing pattern after hitting a local high of $0.2063. A significant breakdown occurred below $0.1980 after testing support levels at $0.2000–$0.1995. A long lower shadow on the candle closing at $0.1978 suggested rejection at the key support level. A doji near $0.2012 hinted at indecision among buyers.

Moving Averages

Short-term 15-minute moving averages (20/50) crossed below price levels toward the end of the session, confirming bearish momentum. On the daily chart, the 50-period MA acted as a dynamic resistance. The 200-period MA remained above the current price, suggesting the asset remains in a medium-term downtrend.

MACD & RSI

MACD crossed below the signal line with bearish divergence, confirming the sell-off. RSI reached overbought territory at 70+ during the initial move to $0.2063 but fell sharply to 25, indicating oversold conditions by the close. This suggests the potential for a short-term bounce but not a reversal in the near term.

Bollinger Bands

Bollinger Bands showed a period of contraction before the sharp sell-off, suggesting a potential breakout. Price broke below the lower band during the early hours of 2025-10-04, signaling increased volatility and bearish momentum. Price remained below the band for much of the session, confirming a continuation pattern.

Volume & Turnover

Volume spiked during the breakdown below $0.1980, with a 15-minute candle at 2025-10-04 15:45 ET recording $10,640,242.10 in turnover. This was the highest single-period turnover of the day. The volume-to-price alignment confirmed the bearish move, with no significant divergence detected.

Fibonacci Retracements

Fibonacci levels from the recent high of $0.2063 to the low at $0.1967 were key. Price found temporary support at the 61.8% level ($0.2010) before breaking below. The 50% level at $0.2015 also failed to hold. On a 15-minute basis, retracements from the $0.2063 high suggested potential bounce levels near $0.2015–$0.2025.

Backtest Hypothesis

The described backtesting strategy, which appears to target short-term mean-reversion opportunities on sharp volatility moves, aligns well with the observed price behavior. For instance, the drop from $0.2063 to $0.1978 could be considered a high-volatility window where a trailing stop or Fibonacci-based mean reversion entry could have been triggered. Given the strong bearish momentum, a buy-the-dip strategy would have been high-risk without confirmation of support. However, if the strategy includes a bearish bias during expansion of Bollinger Bands and divergence in RSI, it could have yielded profitable short positions on the breakdown below $0.1980.