Market Overview: World Liberty Financial/Tether (WLFIUSDT) – 24-Hour Summary (10/30–10/31)

• WLFIUSDT traded lower at 0.1340 from 0.1376, with 61.8% Fibonacci level acting as resistance.
• Volume surged to 12.08M units at 17:45 ET, preceding a sharp 2.4% decline below 0.1360.
• RSI dipped below 50 mid-day, indicating weakening bullish momentum; MACD turned negative.
• Volatility expanded as price dropped 2.6% during the 17:45–18:15 ET session.
• A bearish engulfing pattern formed at 0.1363, with price closing near session lows at 12:00 ET.

World Liberty Financial/Tether (WLFIUSDT) opened at 0.1359 on October 30 at 12:00 ET and reached a high of 0.1385 before closing at 0.1340 as of 12:00 ET on October 31. The pair saw a 24-hour volume of ~47.3M units, with a total turnover of ~$6.39M. Price action reflected bearish exhaustion, with a breakdown from key support levels.

Structure & Formations

Price broke below a key 0.1363 support level—a previous swing low—during the 17:45 ET session, forming a bearish engulfing pattern. This was followed by a continuation of selling pressure into the 18:00–19:00 ET period. A notable doji formed near 0.1343, signaling potential indecision in the short term. The 0.1340 level appears to be a new support zone after several tests.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart are in a bearish alignment, with price trading well below both. On the daily chart, the 50/200 EMA crossover remains neutral, though price is edging closer to the 200-period EMA from below. A retest of the 0.1340–0.1335 zone could trigger a re-entry into the 50 EMA range if bulls regain control.

MACD & RSI

MACD turned negative mid-day, confirming a shift in momentum toward the bearish side. The RSI has been trending below 50 since mid-afternoon, with a low of ~38.5 observed at 19:45 ET. This suggests the pair is in an oversold territory, although no immediate reversal signals have emerged. A bearish crossover on the MACD line and signal line occurred at 17:30 ET, coinciding with the sharp decline in price.

Bollinger Bands

Volatility expanded as price dropped below the lower band at 17:45 ET, reaching as low as 0.1331. This expansion followed a period of consolidation within the bands. Price is currently testing the lower band again, suggesting the possibility of a bounce if the 0.1340–0.1335 zone holds.

Volume & Turnover

Volume peaked at 12.08M units during the 17:45 ET session, coinciding with the breakdown of 0.1363. Turnover also spiked to ~$1.66M during this period. A divergence emerged between price and volume in the 19:00–20:15 ET window, as price continued lower despite declining volume. This could hint at exhaustion among sellers.

Fibonacci Retracements

The 0.1340 level corresponds to the 61.8% retracement of the recent 15-minute swing from 0.1331 to 0.1385. On the daily chart, the 0.1359 level aligns with the 50% Fibonacci retracement from the October 30 high to the October 31 low. A close below 0.1340 could target the 78.6% level at ~0.1328 in the near term.

Backtest Hypothesis

The backtest strategy described focuses on identifying overbought and bearish momentum signals via RSI and MACD. However, the current data limitations prevent a full backtest due to the unavailability of WLFIUSDT’s MACD and RSI time series. Once the correct ticker symbol is confirmed, a robust backtest can be executed to evaluate performance post-event triggers such as RSI overbought levels and MACD death crosses. The hypothesis would then provide actionable insights for future trading decisions.