Wormhole/Tether (WUSDT) Market Overview: 24-Hour Technical Analysis

• WUSDT dropped 0.1087 to 0.0984, forming bearish patterns and a 6.8% decline.
• RSI near 30 signals oversold conditions, but MACD remains bearish with no divergence.
• Volatility expanded in overnight hours, with Bollinger Bands widening and price testing lower bounds.
• Volume spiked during the 0.1016–0.0982 pullback, suggesting selling pressure but no immediate reversal.
• Fibonacci 61.8% level at 0.0992 has acted as key support, now at risk as price declines.

At 12:00 ET–1, Wormhole/Tether (WUSDT) opened at 0.1087 and traded as high as 0.1088 before falling to a 24-hour low of 0.0957. The pair closed at 0.0984 at 12:00 ET, reflecting a bearish trend. Total volume for the period was ~43.5 million tokens, and notional turnover (volume × average price) was ~$4.4M, indicating moderate but uneven activity.

The price structure over the 24-hour period showed a significant breakdown, with key support levels tested and pierced. A long bearish shadow in the early morning hours and a confirmed breakdown below 0.1003 suggest institutional selling. The 20-period and 50-period SMAs on the 15-minute chart are both bearishly aligned, and the daily 50/100/200 SMA setup also supports a continuation of the downtrend.

Structure & Moving Averages

The structure shows a strong bearish bias, with price forming multiple engulfing patterns and key support levels at 0.0992 and 0.1003 failing. On the 15-minute chart, the 20-period and 50-period moving averages are in steep decline and have crossed below recent price lows. On the daily chart, the 50-period SMA is also below the 100- and 200-period SMAs, confirming a bearish bias.

MACD, RSI, and Bollinger Bands

The MACD remains in bear territory, with the line and signal line both trending lower, and no histogram divergence is visible. The RSI has dropped into oversold territory near 30, suggesting potential for a rebound, but without a bear trap confirmation, it is not a strong bullish signal. Bollinger Bands have widened overnight, indicating increased volatility and with price near the lower band, a reversion could be expected.

Volume and Turnover

Volume spiked during the 0.1016–0.0982 pullback, confirming the breakdown in the short-term trend. However, turnover during this period was only moderate, indicating that while volume increased, notional value per trade remained lower, which could suggest a lack of conviction from large players. A divergence between volume and price may hint at a potential consolidation or reversal, but for now, the bearish momentum remains intact.

Fibonacci Retracements

Fibonacci retracements on the recent 15-minute swing from 0.1088 to 0.0957 show key levels at 0.1007 (38.2%), 0.0984 (61.8%), and 0.0965 (78.6%). Price has found immediate resistance at 0.0984 but appears to be testing the 61.8% level for support. A close below 0.0965 could signal a deeper retracement and potentially lead to a test of the 0.0957 low.

Backtest Hypothesis

The backtesting strategy involves entering a short position upon a bearish engulfing pattern forming below the 20-period SMA on the 15-minute chart, with a stop above the high of the formation and a target at the nearest Fibonacci level. Given the recent engulfing patterns and the price staying below the 20SMA, this setup is currently in play. A short trade initiated at 0.1013 with a stop above 0.1018 and a target at 0.0984 could potentially offer a 3.3% risk-reward ratio. The RSI near oversold levels could provide a risk-adjusted entry if a rebound fails to confirm above key levels.