Wormhole/Tether (WUSDT) Market Overview for 2025-10-07

• WUSDT surged 0.115 from 0.1238 to 0.1346 before consolidating, showing strong bullish momentum.
• Volatility expanded dramatically in the 15-minute chart, with a 15-minute high of 0.147 and a low of 0.1270.
• Key resistance appeared at 0.1346–0.1364, while support held around 0.1290–0.1303.
• RSI peaked in overbought territory (~70), suggesting potential short-term pullback risk.
• Volume surged during the 0.1303–0.1416 rally but declined afterward, hinting at profit-taking.

The Wormhole/Tether (WUSDT) pair opened at 0.1238 on 2025-10-06 at 12:00 ET and closed at 0.1282 on 2025-10-07 at the same hour. During the 24-hour window, the pair hit a high of 0.147 and a low of 0.1270, with total volume reaching 302,225,377.7 and notional turnover at approximately $39.4 million (calculated using volume × average price).

Structure & Formations

Price action on the 15-minute chart showed a strong bullish reversal from 0.1270 to 0.1416 over a 4.5-hour span, with a high of 0.147 at the 12:45 ET candle. The move was confirmed by a long white candle and a bullish engulfing pattern. Following the high, price consolidated and tested key Fibonacci levels from the swing high of 0.147 to the swing low of 0.1270. A key support level at 0.1303–0.1308 emerged, while resistance held at 0.1346–0.1364. A bearish engulfing pattern emerged near 0.1346 on the 12:00 ET candle, suggesting a possible pullback.

Moving Averages

On the 15-minute chart, price briefly surged above the 20SMA and 50SMA but fell back below after 12:00 ET. The daily chart showed the 50DMA at approximately 0.1295 and the 200DMA at 0.1230. Price remained well above the 50DMA, suggesting medium-term bullish bias. The 100DMA at 0.1245 also provided a reference point for possible support or consolidation.

MACD & RSI

The MACD turned positive during the 0.1270–0.1416 rally and peaked at 0.008 before the histogram flattened and turned negative after 09:00 ET. RSI peaked at ~70 during the 12:45 ET high of 0.147, indicating overbought conditions. A RSI divergence appeared between 12:00 and 12:45 ET, where price made higher highs while RSI made lower highs, hinting at weakening bullish momentum.

Bollinger Bands

Bollinger Bands expanded significantly during the 0.1270–0.1416 move, with price reaching the +2σ level at 0.147. Following this, price remained between the -1σ and +1σ levels, suggesting moderate volatility. The 20-period Bollinger Bands tightened slightly between 08:00 and 09:00 ET, indicating a possible breakout or reversal.

Volume & Turnover

Volume spiked during the 0.1270–0.1416 rally, with the 12:45 ET candle recording the highest notional turnover at $40.6 million. After this high, volume declined sharply, indicating profit-taking or exhaustion of the bullish wave. A divergence between volume and price was observed during the 12:00–12:45 ET consolidation phase, where volume declined while price remained range-bound.

Fibonacci Retracements

Key Fibonacci levels from the 0.1270 to 0.147 move were tested. The 61.8% retracement at ~0.1364 held as resistance, and the 38.2% level at ~0.1323 supported price temporarily. On the 15-minute chart, the 50% retracement level at ~0.1346 was a pivotal point for short-term traders.

Backtest Hypothesis

The described backtesting strategy suggests a short-term breakout approach, entering long on a close above the 20-period Bollinger Band +2σ level and exiting upon a close below the 50SMA. This aligns with the recent action where WUSDT broke above the +2σ level at 0.147 on the 12:45 ET candle, followed by a consolidation phase. While the breakout initially showed promise, the subsequent RSI divergence and bearish engulfing pattern at the 12:00 ET candle suggest that the strategy may need a trailing stop or a more conservative exit rule to manage drawdown risk after the peak.