WalletConnect Token/BNB Market Overview: Volatility Peaks, Bearish Momentum Confirmed

• WalletConnect Token/BNB (WCTBNB) closed lower at 0.0001979, down from an open of 0.0002014 after testing a high of 0.0002041.
• A bearish breakdown below 0.0002000 was confirmed, with volume surging near the session high before fading.
• Volatility expanded in the 19:45–20:30 ET window, followed by consolidation below 0.0002000.
• A notable bearish divergence in volume and price emerged during the 00:15–01:45 ET window.
• RSI entered oversold territory below 30, suggesting potential short-term reversal but with bearish bias intact.

WalletConnect Token/BNB (WCTBNB) traded between 0.0001924 and 0.0002041 over the past 24 hours, with a 12:00 ET close of 0.0001979 against an open of 0.0002014. Total volume was 27,856.2 with a turnover of approximately $5,617.54. The pair saw a sharp selloff into the early hours of 2025-10-10, breaking key support levels and consolidating in a lower range.

Structure & Formations

The price formed a bearish engulfing pattern around 20:00–20:30 ET, confirming a breakdown below 0.0002000. A 15-minute candle at 00:15 ET opened at 0.0001994 and closed at the same level after a sharp descent from 0.0002021, showing bearish exhaustion. A potential support cluster formed around 0.0001960–0.0001970, marked by several 15-minute consolidations. Resistance at 0.0002020–0.0002040 has held as a ceiling multiple times.

Moving Averages

On the 15-minute chart, the 20SMA crossed below the 50SMA late in the session, confirming a bearish bias. On the daily chart, the 50DMA sits at 0.0002025, with the 100DMA and 200DMA at 0.0002020 and 0.0002035 respectively, suggesting near-term bearish alignment.

MACD & RSI

The MACD crossed below zero during the 23:30–00:15 ET period and maintained bearish momentum, with the histogram showing a peak at the time of the breakdown. RSI dipped below 30 in the 00:45–02:30 ET window, indicating oversold conditions. However, this level has shown limited buying interest so far, suggesting further downward movement is likely before a potential bounce.

Bollinger Bands

Price action remained within the Bollinger Bands for most of the session, with a notable contraction in volatility during the 03:45–05:00 ET window. The 19:45–20:30 ET candle broke out of the upper band but failed to hold above 0.0002040. The current price sits near the lower band, indicating bearish pressure and possible further consolidation within this range.

Volume & Turnover

Volume spiked sharply at the session high of 0.0002041 during the 19:45–20:30 ET period before tapering off. A divergence in price and volume was evident between 00:15 and 01:45 ET, where prices continued to fall despite no significant increase in volume. This suggests weakening bearish conviction, but with a strong breakdown in place, further downward movement appears likely.

Fibonacci Retracements

Applying Fibonacci retracements to the 0.0001924–0.0002041 swing, key levels include 38.2% at 0.0001978 and 61.8% at 0.0001959. The current price of 0.0001979 is nearly aligned with the 38.2% retracement level. This level may act as a short-term support zone, offering potential for a bounce or a retest of the 61.8% level if bearish momentum persists.

Backtest Hypothesis

Given the bearish engulfing pattern at the key support level of 0.0002000 and the confirmation by the breakdown, a potential short strategy could be initiated with a stop above 0.0002020. A trailing stop at 1.5% of the trade size or a fixed target at 0.0001959 (61.8% retracement) offers a defined risk-reward ratio. Historical 15-minute data suggests that once a breakdown like this occurs, it is often followed by a 2–3% continuation move. A backtest using this approach over recent 15-minute swings could validate the strategy’s efficacy in similar setups.