Market Overview for WOO/Tether (WOOUSDT): Strong Rebound on Oversold Rejection

• Price declined from 0.0721 to 0.0696 overnight before reversing with a strong upward bias.
• High volatility observed between 18:00 and 00:00 ET, with a sharp 5.5% rebound in the last 6 hours.
• Volume surged above average in the morning session, confirming the reversal from oversold RSI levels.
• Price is currently forming a bullish ascending triangle, with 0.0715 as key resistance ahead.
• Turnover remains elevated, suggesting increased participation and potential for trend continuation.

Opening Summary

WOO/Tether (WOOUSDT) opened at 0.0718 on October 5 at 12:00 ET, reaching a low of 0.0691 before closing at 0.0696 at that time. By 12:00 ET on October 6, the pair had risen to 0.0735, closing at 0.0735. Total volume for the 24-hour period was approximately 20,382,631.9 units, with notional turnover amounting to 68.

Structure & Formations

The candlestick structure revealed a strong bearish phase from 18:00 to 00:00 ET, marked by a series of bearish engulfing patterns and long lower shadows. However, a bullish reversal began after 03:00 ET, with a key bullish engulfing pattern forming at 06:00 ET. A small doji at 04:00 ET suggested indecision before buyers regained control.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs crossed above key support levels by 06:00 ET, signaling a short-term bullish crossover. On the daily chart, the 50-period SMA currently sits at 0.0712, with the 200-period SMA acting as a long-term support at 0.0705.

MACD & RSI

The MACD turned positive by 06:00 ET, confirming the bullish reversal. RSI dropped into oversold territory below 30 during the bearish phase and has since risen to 58, indicating a strong bounce. A potential overbought level is near 60, which traders may watch for possible corrections.

Bollinger Bands

Volatility expanded significantly between 18:00 and 00:00 ET, with the bands widening from a contraction. Price tested the lower band twice before rebounding sharply. Currently, WOOUSDT is trading near the upper band, suggesting the continuation of a bullish trend.

Volume & Turnover

Volume surged during the bearish phase, peaking at 954,181.4 at 19:00 ET, but remained relatively muted during the reversal. Turnover, however, showed a clear increase in the morning session, particularly between 06:00 and 09:00 ET, confirming the shift in sentiment.

Fibonacci Retracements

Applying Fibonacci to the recent 15-minute swing from 0.0691 to 0.0735, the 38.2% retracement level is at 0.0715 and the 61.8% level is at 0.0725. Price is now testing the 61.8% retracement, suggesting a possible pause or continuation based on breakout strength.

Backtest Hypothesis

A potential backtesting strategy involves entering a long position when RSI crosses above 30 and price closes above the 20-period SMA on the 15-minute chart, with a stop loss placed below the most recent swing low. A profit target can be set at the 61.8% Fibonacci retracement level of the preceding bearish move. This approach could capture early-stage reversals with relatively high probability, especially in periods of high volatility and strong volume confirmation.