Market Overview for Wormhole/Tether (WUSDT)

Summary
• Price action showed consolidation around $0.0355 after a sharp drop to $0.034.
• RSI and MACD signaled oversold conditions around midday, suggesting potential for a short-term bounce.
• Volume spiked during the selloff but failed to confirm a sustained bearish move.
• Bollinger Bands narrowed before the 16:00 ET rebound, hinting at a potential breakout.
• Fibonacci retracement levels at 0.034–0.0351 saw repeated rejection, indicating key support.

Market Overview

Wormhole/Tether (WUSDT) opened at $0.0353 on 2025-12-20 12:00 ET, reached a high of $0.0358, dropped to a low of $0.0337, and closed at $0.0342 by 2025-12-21 12:00 ET. Total volume across the 24-hour window was 12,831,676.8, with notional turnover at approximately $446,367.8.

Price Structure and Key Levels

The 24-hour period featured two key moves: a bullish rebound from $0.034 and a bearish breakdown into $0.0337. A bearish engulfing pattern was visible around 13:45 ET, followed by a potential bullish reversal at 16:00 ET. The 0.035–0.0355 range appears to be a critical area of internal resistance and support, with repeated testing over the day.

Moving Averages and Momentum

On the 5-minute chart, price spent most of the session above the 20-period and 50-period moving averages, suggesting a relatively neutral to slightly bullish bias. However, after midday, price dipped below both, signaling potential bearish exhaustion. The 50-period line held as a dynamic support in the second half. RSI dropped below 30 around 13:30 ET, indicating oversold conditions, which may support a near-term bounce. .

Volatility and Bollinger Bands

Volatility expanded sharply during the sell-off, widening the Bollinger Bands. Price reached the lower band multiple times but failed to break below it decisively, suggesting a floor may be forming near $0.034. A contraction in band width occurred just before the 16:00 ET rebound, a classic sign of a potential breakout or reversal.

Volume and Turnover

Volume surged during the sell-off phase, with the largest 5-minute volume spike (5,126,215.6) recorded at 13:45 ET. This was accompanied by a drop in price from $0.0343 to $0.034. However, the price failed to make a new low after that point, indicating a volume divergence that may signal weakening bearish momentum.

Key Fibonacci Levels

Applying Fibonacci retracement to the key intraday move from $0.034 to $0.0337, the 61.8% level is at $0.0339 and the 38.2% level at $0.0342. Price found support near both, with a stronger reaction at $0.0342. This suggests that traders may view this as a short-term floor. Looking ahead, the next 24 hours may see continued consolidation in the $0.034–0.035 range. A break above $0.0355 could signal renewed bullish momentum, while a sustained move below $0.034 may test longer-term support. Investors should remain cautious and monitor volume and momentum indicators for confirmation of any directional move.