Market Overview: Wormhole/Tether (WUSDT) on 2025-10-05

• Wormhole/Tether (WUSDT) traded in a volatile 24-hour range, with price peaking at 0.1205 and testing 0.1187.
• Momentum shifted from bullish to bearish after 06:00 ET, as the RSI entered overbought territory and corrected sharply.
• Volume surged during the 0300–0600 ET window, coinciding with a 4.3% rally to 0.1205, indicating strong accumulation.
• Bollinger Bands widened during the breakout, suggesting increased volatility and higher short-term uncertainty.
• A potential 61.8% Fibonacci retracement level appears near 0.1177, offering near-term support if the downward trend continues.

Wormhole/Tether (WUSDT) opened at 0.1136 on 2025-10-04 at 12:00 ET and closed at 0.1198 at 12:00 ET on 2025-10-05. The price reached a high of 0.1205 and a low of 0.1133 during the 24-hour period. Total traded volume was 106,022,505.54, with a notional turnover of approximately $12,162,390.02.

The 24-hour OHLCV data showed a distinct pattern of volatility clustering between 03:00 and 06:00 ET, where WUSDT rallied by nearly 4.3%. This was supported by a sharp volume surge and a closing bullish engulfing pattern at 03:45 ET (0.1169 open to 0.1178 close). The price then faced consolidation, with a bearish pinocchio candle forming at 06:00 ET (high 0.1205, close 0.1188), suggesting near-term indecision. Key support levels emerged around 0.1177 (61.8% Fib retracement) and 0.1150 (38.2% Fib retracement), while resistance remains at 0.1205 and potentially 0.1235.

The 15-minute RSI showed overbought conditions at 0.1205 but quickly corrected into a neutral to mildly oversold range by 09:45 ET, indicating a possible pullback. The MACD line crossed below the signal line shortly after 04:00 ET, forming a bearish crossover. Bollinger Bands had widened during the 03:00–06:00 ET rally but began to contract after 08:00 ET, signaling reduced volatility. A key 50-period moving average was crossed above at 03:45 ET, supporting the initial bullish move, but fell back below by 06:30 ET.

The 20-period moving average on the 15-minute chart showed a temporary bullish crossover at 03:45 ET, confirming the early morning rally, but reversed below the 50-period MA by 06:30 ET. The daily 50 and 200-period MAs were not visible in the 24-hour data, but the intraday 15-minute MA behavior suggested a short-term bearish bias. Notably, volume and turnover were tightly aligned during the 03:00–06:00 ET rally, offering confirmation of price action. However, a divergence appeared between 09:00 and 10:00 ET, with rising price but declining volume, suggesting weakening bullish momentum.

Backtest Hypothesis: A strategy based on a 15-minute bullish engulfing pattern followed by a volume confirmation (above 10% of 15-minute average volume) entered long positions at the open of the next candle. Stops were placed 0.5% below entry, and targets aligned with the 38.2% and 61.8% Fibonacci levels from the preceding bearish swing. During the 24-hour period, one such entry would have been triggered at 03:45 ET. The trade would have closed at 04:00 ET with a +1.5% gain before entering a bearish phase. This suggests the pattern, when combined with volume confirmation, may be a viable short-term entry tool for WUSDT.