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

• WUSDT declined by ~1.3% over 24 hours, closing near intraday support with bearish momentum.
• Key support tested near $0.115–0.116 as price failed to break above critical resistance at $0.120.
• Volatility expanded in late ET hours, with volume surging during the downward leg.
• RSI and MACD indicate weakening bullish momentum, with price at or near Bollinger Band lower limits.
• Fibonacci levels suggest potential bounce from 38.2% retracement (~0.1165) or further decline to 61.8% (~0.1142).

At 12:00 ET on 2025-10-04, WUSDT opened at $0.1198, reached a high of $0.1244, and closed at $0.1160, with a low of $0.1135. Total volume over 24 hours was ~78.3 million, and turnover was ~$10.5 million. Price appears to have exhausted bullish momentum while bearish pressure intensified after 20:00 ET.

Structure & Formations

Price carved a broad bearish flag pattern following a brief rally above $0.120. Notable bearish engulfing candles formed around 19:00 ET and 06:00–09:00 ET, confirming downward momentum. A long lower wick at $0.1155–0.1165 suggests a temporary bounce, but the formation lacks bullish confirmation. Key support levels appear at $0.1160 and $0.1150, with a 20-period low at $0.1135.

Moving Averages

On the 15-minute chart, the 20-EMA dipped below the 50-EMA, forming a bearish crossover. Daily data suggests the 50 and 200-day EMAs are converging toward $0.1180, indicating potential medium-term bearish alignment if current trends persist.

MACD & RSI

MACD turned negative after 18:00 ET and remains bearish, with bearish divergence noted in the last three candles. RSI fell into oversold territory (~43–45) during the final 6 hours, suggesting a potential rebound but not a reversal. However, divergence between RSI and price action suggests caution.

Bollinger Bands

Volatility expanded significantly between 04:15 ET and 06:00 ET, with a sharp contraction preceding the downward move. Price has remained near the lower Bollinger Band for most of the last 12 hours, indicating bearish pressure.

Volume & Turnover

Volume spiked during the 04:15–05:30 ET timeframe and again between 06:00–07:00 ET, coinciding with significant price declines. Notional turnover followed a similar pattern, with a clear divergence between rising volume and falling price after 05:45 ET, suggesting aggressive selling pressure.

Fibonacci Retracements

Applying Fibonacci to the $0.1135–0.1244 swing, the 38.2% and 61.8% levels sit at $0.1165 and $0.1142, respectively. Price is currently consolidating near the 38.2% level. A break below 0.1142 may accelerate the next leg down.

Backtest Hypothesis

Given the observed bearish momentum, a potential backtest strategy could involve entering short positions on a close below the 20-EMA with a stop just above the 38.2% Fibonacci level (~0.1165) and a target near the 61.8% level (~0.1142). This approach aligns with the bearish engulfing patterns and declining volume/turnover dynamics, offering a clear risk-reward ratio. A 15-minute timeframe MACD bearish crossover could be used as an entry trigger.