World Liberty Financial/Tether Market Overview

• Price dropped to 0.1225 before rebounding, closing at 0.1247 with a 24-hour volume of ~116 million WLFI.
• Strong bearish momentum early in the session, followed by consolidation and a modest recovery.
• Volatility expanded significantly during the selloff, with price testing key Fibonacci levels near 0.126–0.122.
• MACD and RSI suggest moderate oversold conditions, hinting at potential short-term rebound potential.
• Divergence between volume and price action raises questions about the strength of the recent bounce.

World Liberty Financial/Tether (WLFIUSDT) opened at 0.1343 at 12:00 ET – 1 and reached a high of 0.136 before falling to a low of 0.1225. The pair closed at 0.1247 at 12:00 ET today. Total volume for the 24-hour period was approximately 116.3 million WLFI, with notional turnover reflecting significant bearish activity during the early hours of the session.

Over the past 24 hours, WLFIUSDT displayed a clear bearish bias, with price breaking below key support levels and consolidating near 0.1225 before a modest recovery. A large bearish candle on the 15-minute chart at 21:30 ET marked a 2.6% decline, forming a strong rejection pattern. Subsequent buying interest emerged, with price testing the 0.124–0.126 range, where prior resistance appears to be offering support. This could indicate a short-term reversal if buyers hold above 0.125.

A 20-period moving average on the 15-minute chart currently lies beneath the price, suggesting bearish control, while the 50-period line is approaching a potential confluence with the 0.125–0.126 Fibonacci 38.2% retracement level. On the daily timeframe, the 50-day and 200-day moving averages remain widely separated, indicating a longer-term bearish bias. However, the convergence of Fibonacci and moving average levels near 0.125–0.126 may act as a pivot for near-term direction.

The RSI has moved into oversold territory (~25), signaling potential for a bounce, but with volume trailing off during the recovery, the strength of this reversal is questionable. The MACD is approaching a negative crossover, reinforcing bearish momentum. Meanwhile, Bollinger Bands have widened significantly following the selloff, with price now settling closer to the lower band. A closing above the 15-minute upper band could confirm a short-term rebound.

Backtest Hypothesis
Given the recent bearish break and oversold conditions, a potential backtesting strategy could focus on mean reversion using Fibonacci retracement levels and moving average crossovers. For example, entering a long position on a confirmed close above 0.126 (aligning with 38.2% Fibonacci and 50-period MA) with a stop-loss below 0.123 could capture a short-term bounce. Alternatively, a short trade could be triggered on a breakdown of 0.123 with a target near 0.120. However, due to the lack of available MACD data and potential symbol recognition issues, this strategy must be refined using confirmed symbol data or historical CSV inputs.