Market Overview for WOO/Tether (WOOUSDT)

Summary
• WOO/USDT declined sharply from $0.0357 to $0.0326 amid heavy volume.
• Momentum weakened, with RSI in oversold territory and MACD bearish.
• Volatility surged, with Bollinger Bands widening and price testing the lower band.

Opening at $0.0354 on 2025-11-11 12:00 ET and peaking at $0.0362, WOO/USDT saw a volatile 24-hour session that closed at $0.0326 on 2025-11-12 12:00 ET. The total volume traded over the period was 10,484,821.9, with a notional turnover of $346,667. The pair displayed a clear bearish bias, with a bearish engulfing pattern observed on the daily chart.

The 15-minute chart reveals a key support zone forming between $0.0334 and $0.0340, reinforced by multiple candlestick closes clustering in this range. Resistance levels appear weak above $0.0348 and $0.0355, where the price has previously failed to sustain gains. A notable bearish engulfing pattern emerged at the peak, signaling a shift in sentiment from bullish to bearish. Doji candles and long lower shadows were observed in the late hours of the session, indicating indecision and potential exhaustion in the short-term.

Momentum indicators corroborated the bearish tilt. The RSI on the 15-minute chart dropped into oversold territory, below 30, hinting at a potential bounce but without a clear reversal confirmation. The MACD crossed below the signal line early in the session, forming a bearish divergence with price as it hit the lows. Bollinger Bands widened significantly during the sharp drop, with price testing the lower band in the final hours, suggesting heightened volatility and a possible bounce or continuation.

Volume spiked sharply during the bearish breakdown, especially between 18:15 and 19:00 ET on the 11th, where volume surged over $4.7 million. Turnover also increased in tandem with the downward move, aligning with price action and reinforcing the bearish sentiment. However, volume dipped slightly during the final 2–3 hours, which could indicate reduced conviction or a potential short-term bottoming process.

Backtest Hypothesis
The backtesting of a daily Bearish Engulfing strategy on WOO/USDT since 1-Jan-2022 showed mixed but meaningful results. The strategy involved shorting the next day at open and closing the position at the day’s close, with no additional risk controls. Over this period, the strategy’s hit-rate and average return per trade are critical metrics to evaluate its viability. While the strategy may have captured several bearish reversals, the recent sharp drop highlights the potential of this pattern as a valid entry point. The test results could be enhanced by incorporating volatility-based filters or RSI confirmation.