Market Overview: Wormhole/Tether (WUSDT) Faces Key Support Test Amid Bearish Momentum

Summary
• Price action formed a bearish breakdown from 0.0344–0.0345 resistance cluster.
• Momentum weakened as RSI declined to 30, signaling oversold conditions.
• Volume spiked at 20:45–21:00 ET, confirming the pullback to 0.0339.
• Price tested 0.0342–0.0343 as a key support/resistance pivot multiple times.
• Volatility expanded after 0.034 drop, with Bollinger Bands widening after 20:30 ET.

Market Overview

Wormhole/Tether (WUSDT) opened at 0.0343 on 12/29 at 12:00 ET, peaked at 0.0345, and fell to a low of 0.0333 before closing at 0.0344 on 12/30 at 12:00 ET. Total volume for the 24-hour period was 31,816,898.0 and notional turnover was $1,098,931.26.

Structure & Formations

Price action over the past 24 hours revealed a key resistance cluster at 0.0344–0.0345, which failed to hold during a significant bearish candle on 20:45 ET, breaking to the downside. A potential bearish engulfing pattern formed at 20:30–20:45 ET, confirming the downward move. A doji at 0.0339–0.034 suggested indecision, and price found temporary support at 0.0342–0.0343 multiple times, suggesting a pivot zone.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages were closely aligned during the morning, but price began to diverge from the 50-period MA around 18:00 ET, signaling potential momentum shift. On the daily chart, price remained below the 50/100/200-period MAs, reinforcing the bearish bias for the shorter-term trend.

MACD & RSI

The MACD showed bearish divergence as price attempted to rally back to 0.0343–0.0344, with the histogram shrinking. RSI dropped to 30 during the 20:45–21:15 ET session, indicating oversold conditions. However, the absence of a strong reversal candle suggests the bearish momentum could continue.

Bollinger Bands

Volatility expanded after the breakdown of 0.0344, with Bollinger Bands widening significantly from 20:30–21:00 ET. Price traded near the lower band for much of the 21:00–05:00 ET window, indicating bearish pressure. A potential bounce off the lower band at 0.0339 was observed, but without confirmation of a reversal candle.

Volume & Turnover

Volume spiked at 20:45 ET during the breakdown to 0.0339, confirming the move. Notional turnover increased in tandem with volume during the key bearish move, indicating strong bearish conviction. However, volume during the subsequent 0.0342–0.0344 range was relatively thin, suggesting the market is testing support without strong conviction.

Fibonacci Retracements

Applying Fibonacci retracements to the 0.0345–0.0333 swing, price found a potential pivot at 61.8% (0.0339) and briefly tested the 38.2% (0.0342) level. These levels appear to be acting as key turning points in the short term, but without strong volume confirmation, a break below 0.0339 may continue to be a risk.

Wormhole/Tether (WUSDT) faces a critical 0.0342–0.0343 support/resistance pivot as bearish momentum builds on bearish divergences in momentum indicators. The breakdown of 0.0344 at 20:45 ET was confirmed by volume and notional turnover, increasing the probability of further downside. Price appears to be consolidating below 0.0344 with a potential pivot near 0.0339.

While a short-term bounce may be possible off the 0.0339 level, the broader bearish context suggests additional downside could materialize in the next 24 hours. Investors should remain cautious, monitor volume confirmation at key levels, and watch for bearish continuation signals in the form of a breakdown below 0.0339.