WAX/Tether Market Overview – 2025-09-26

• WAXPUSDT declined from 0.01761 to 0.01739 over the last 24 hours with a bearish close.
• Price tested multiple support levels, including a key 0.0172 support, before rebounding.
• Volatility increased during the drop but has since stabilized.
• RSI shows moderate bearish momentum but no oversold conditions.
• High-volume sell-off occurred between 19:00–20:00 ET, indicating distribution.

WAXPUSDT opened at 0.0176 on 2025-09-25 at 12:00 ET, reached a high of 0.01761, and closed at 0.01748 at 12:00 ET on 2025-09-26. The price action was marked by a bearish trend amid increased volatility. Total volume amounted to 47,230,200 units, while the notional turnover stood at $824,756.

The candlestick pattern displayed several key formations. A bearish engulfing pattern formed during the early hours of the 24-hour period, confirming a shift in sentiment. Later, price action formed a doji-like consolidation near 0.01736, suggesting indecision. Critical support levels were identified at 0.0173, 0.0172, and 0.01715, while resistance clustered between 0.01745 and 0.01755.

A 20-period and 50-period moving average on the 15-minute chart showed a bearish crossover during the afternoon hours, reinforcing the downtrend. On the daily timeframe, the 50-period and 100-period moving averages were closely aligned, suggesting a possible consolidation period ahead. MACD remained bearish with a negative histogram and bearish crossover. RSI hovered around 40–45, indicating moderate bearish momentum, though not extreme.

Volatility increased significantly between 19:00 and 20:00 ET, with the highest volume candle showing a sharp selloff. This was followed by a retest of key support levels, where price found temporary buyers. Bollinger Bands showed expansion during the price drop and have since contracted, indicating a potential period of consolidation or reversal. Fibonacci retracement levels from the recent swing high suggest 0.01732 (38.2%) and 0.0172 (61.8%) as critical levels.

The price may continue to test support at 0.0173 in the next 24 hours, with a risk of a breakdown if volatility spikes again. A bounce above 0.01745 could signal a potential reversal, though a breakout without confirmation may be short-lived.

Backtest Hypothesis
Given the recent bearish engulfing pattern and the strong volume selloff, a mean-reversion strategy could be applied. A long entry could be triggered on a bullish crossover of the 20-period and 50-period moving average, provided the price closes above 0.01745 with a volume increase. A stop-loss would be placed below the 0.0173 support level, while a take-profit target aligns with the 0.0175 Fibonacci level. This setup would be tested over the next 48 hours, with performance evaluated based on risk/reward ratio and signal-to-noise ratio in volatility.