Market Overview for Wormhole/Tether (WUSDT) – 2025-09-19

• WUSDT opened at $0.1147 and closed at $0.1094, with a 24-hour high of $0.1269 and a low of $0.1097.
• Price retreated from a bullish breakout, forming multiple bearish patterns like bearish engulfing and hanging man, suggesting exhaustion in buying pressure.
• Volatility expanded sharply during the breakout to $0.1269 but has since contracted, signaling a potential consolidation phase.
• RSI and MACD suggest overbought conditions were followed by bearish momentum, with volume confirming the selloff toward session close.
• Notable support levels appear at $0.1120 and $0.1086, with Fibonacci retracements indicating potential reversal points at 61.8% (~$0.1140) and 38.2% (~$0.1190).

Wormhole/Tether (WUSDT) opened at $0.1147 on 2025-09-18 at 12:00 ET and closed at $0.1094 by 2025-09-19 at 12:00 ET. The 24-hour period saw a high of $0.1269 and a low of $0.1097. Total trading volume was 126,043,464.19999998 units, with a notional turnover of $14,696,550.09 USD. The price has shown signs of bearish exhaustion, with key support and resistance levels emerging.

Structure & Formations

Price action on WUSDT revealed a strong initial breakout above $0.1200 on the 15-minute chart, reaching as high as $0.1269. However, this was followed by a sharp correction, forming bearish patterns such as the bearish engulfing, hanging man, and evening star. These suggest that buyers may have lost momentum, with sellers taking control as the price settled near the session low. Key support levels appear at $0.1120 and $0.1086, while resistance is clustered around $0.1140 and $0.1170. The price may test these levels again in the next 24 hours.

Moving Averages

On the 15-minute chart, the 20- and 50-period moving averages have diverged, with the 20 SMA crossing below the 50 SMA, forming a bearish death cross. This reinforces the short-term bearish bias. On the daily chart, the 50-period MA is above the 100 and 200-period MAs, indicating a potential medium-term bullish trend. However, the recent pullback may test the 50 MA as a key dynamic support level.

MACD & RSI

The MACD line crossed below the signal line during the afternoon, forming a bearish crossover and confirming the selloff. The histogram has also turned negative, indicating weakening bullish momentum. RSI dipped below 30 early in the session and remained in oversold territory for most of the day, suggesting the price may stabilize in the near term. However, the RSI failed to show a strong rebound even at oversold levels, signaling possible exhaustion in the bearish move.

Bollinger Bands

Volatility was elevated during the breakout to $0.1269, with the price reaching the upper band. Since then, volatility has contracted, and the price has traded within the bands, suggesting a consolidation phase. The lower band currently sits near $0.1086, and a break below this could trigger a new leg down. If the price stabilizes above the lower band, it may indicate the formation of a new support level, potentially allowing for a bounce toward $0.1130.

Volume & Turnover

Volume spiked during the breakout to $0.1269, with a 15-minute candle at $0.1269 recording a volume of 11,415,431 units, indicating strong conviction in the move. However, volume confirmed the selloff toward session close, with a final 15-minute candle at $0.1094 showing 2,652,403 units traded. This volume divergence reinforces the bearish bias. Turnover also spiked during the breakout before declining, indicating that the initial bullish momentum may not be sustainable without renewed buyer interest.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent swing high of $0.1269 and low of $0.1097, key levels to watch include the 38.2% retracement at ~$0.1190 and the 61.8% retracement at ~$0.1140. The price has already tested $0.1140 twice in the last 24 hours, suggesting this level is gaining significance. A break below $0.1086 could extend the Fibonacci sequence further, with the 78.6% level at ~$0.1108.

Backtest Hypothesis

The recent price behavior and technical indicators align with a short-term bearish backtesting strategy that relies on breakout failures and bearish momentum confirmation via MACD and RSI. A potential approach would involve selling at confirmed bearish crossovers with volume confirmation and targeting a stop-loss above the 50-period MA. Given the current volatility contraction and the formation of bearish candlestick patterns, the setup appears favorable for short-term bearish traders. However, long-term investors may see the current pullback as a consolidation phase before a potential resumption of the bullish trend.