World Liberty Financial/Tether (WLFIUSDT) Market Overview

• Price dropped 13.7% from 0.1822 to 0.1780 over 24 hours, showing bearish momentum
• RSI below 40 suggests oversold conditions, but lack of volume confirms weak bullish conviction
• Key support at 0.1745–0.1760 tested twice, resistance now at 0.1792–0.1800
• Bollinger Band contraction indicates potential volatility break
• Volume surged during sharp drop, highlighting fear-driven selling

World Liberty Financial/Tether (WLFIUSDT) opened at 0.1822 at 12:00 ET−1 and fell to a 24-hour low of 0.1729, rebounding to close at 0.1780 at 12:00 ET. The total volume traded was 100,717,046.9 units, while total turnover was approximately $18,433,300, calculated using average trade prices. The pair showed strong bearish pressure late in the session.

Structure & Formations

Price formation over the past 24 hours revealed a bearish trend with a sharp decline from a high of 0.1874 to a 24-hour low of 0.1729. A strong bearish engulfing pattern occurred around 20:00–22:00 ET−1, confirming downward momentum. A doji at 0.1792 suggests potential reversal or indecision, but failed to trigger a sustained rebound. Key support levels identified are at 0.1745–0.1760 and 0.1725–0.1730, both previously tested and holding. Resistance appears at 0.1792–0.1800 and 0.1813–0.1822.

Moving Averages

On the 15-minute chart, the 20 and 50 EMA show a bearish crossover, with both lines trending downward. On the daily chart, the 50 and 100-day EMA have crossed below the 200-day line, indicating a bearish trend across multiple timeframes. The price is currently trading below all three key moving averages, reinforcing the downward bias.

MACD & RSI

MACD has remained negative for most of the 24-hour period, with a recent bearish crossover reinforcing the downtrend. RSI has dipped below 40, suggesting oversold conditions, but volume remains muted during the decline, indicating weak bullish conviction. A potential bounce from oversold levels is possible, but likely to be short-lived without meaningful volume support.

Bollinger Bands

Bollinger Bands show a recent contraction in volatility during the early morning hours, signaling a potential break in either direction. Currently, the price sits at the lower band (around 0.1780), reinforcing the bearish bias. A breakdown below the lower band could target the next support level at 0.1725–0.1730.

Volume & Turnover

Volume spiked during the sharp decline from 0.1874 to 0.1729, indicating fear-driven selling rather than accumulation. Turnover remained in line with the price action, with no notable divergence between volume and price. A lack of follow-through buying after the rebound indicates weak short-covering or buying interest.

Fibonacci Retracements

On the 15-minute chart, the most recent swing from 0.1874 to 0.1729 has been retraced at the 38.2% level (around 0.1805) and 61.8% (around 0.1757). The 50% retracement at 0.1800 is a key level to watch for potential bounces or breakdowns. On the daily timeframe, the 61.8% retracement (around 0.1760) holds significant psychological support.

Backtest Hypothesis

Given the current structure and indicator readings, a backtesting strategy based on bearish engulfing patterns combined with RSI divergence and volume confirmation could yield meaningful short-term signals. A sell entry could be triggered on a bearish engulfing pattern forming near key resistance levels (e.g., 0.1792–0.1800), confirmed by RSI divergence and above-average volume. A stop-loss could be placed above the pattern's high, while a profit target could aim for the next Fibonacci support level (e.g., 0.1757 or 0.1745). This hypothesis aligns with the observed price action over the last 24 hours and could be backtested for its viability across similar market conditions.