Wormhole/Tether Market Overview – 2025-09-24

• Wormhole/Tether (WUSDT) fell from 0.1054 to 0.1076 over 24 hours, with volatility rising.
• Price action showed oversold RSI and a potential bullish reversal pattern near 0.1073–0.1076.
• Bollinger Bands expanded with price near the midline, suggesting increased volatility ahead.
• Volume surged after 0.1075, aligning with price action and indicating potential confirmation of support.

Wormhole/Tether (WUSDT) opened at 0.1054 at 12:00 ET–1 and closed at 0.1076 by 12:00 ET, with a high of 0.1111 and a low of 0.1001 during the 24-hour period. Total volume reached 426,610,677.35, and notional turnover was estimated at 44,808,356.22. The price action reflected choppy movement before a late rally above 0.1075.

Structure & Formations

The candlestick pattern near 0.1075–0.1086 shows a potential bullish reversal, with a hammer forming at 0.1075 and a bullish engulfing pattern at 0.1086–0.1091. Key support levels appear at 0.1073 and 0.1061, while resistance is at 0.1088 and 0.1095. A doji formed near 0.1087, suggesting indecision among traders.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages were both below the price, indicating short-term bullish momentum. On the daily timeframe, the 50-period SMA was at 0.1069, while the 100-period and 200-period SMAs were lower, suggesting a potential short-term bullish trend.

MACD & RSI

The RSI reached 31 during the early hours of 0.1001–0.1009, indicating oversold conditions, before rising to 52–56 near the end of the period. MACD crossed above zero after 0.1075, confirming the upward momentum as price broke key support and found a base.

Bollinger Bands

Volatility expanded significantly after 0.1075, with the price finding support near the midline of the bands and trading close to the upper band during the 0.1093–0.1106 rally. The widening bands suggest increased uncertainty and potential for further price swings.

Volume & Turnover

Volume spiked sharply at 0.1075, confirming the price action as the asset broke below key support and reversed. Notional turnover also rose during this rally, aligning with the price movement and suggesting strong institutional or retail interest.

Fibonacci Retracements

The 0.1075–0.1086 rally retraced to 61.8% at 0.1081 and to 38.2% at 0.1078, both of which acted as minor support levels. On the daily chart, a 61.8% retracement from the 0.1001–0.1111 swing is at 0.1066, aligning with the 50-period SMA and suggesting a potential short-term target.

Backtest Hypothesis

A potential backtesting strategy could involve entering long positions when price breaks above the 61.8% Fibonacci retracement at 0.1081, confirmed by a bullish engulfing pattern and a positive MACD crossover. A stop-loss could be placed below the 0.1073 support, with a take-profit targeting the 100-period SMA at 0.1088–0.1095. This strategy aligns with the observed price structure and momentum indicators, offering a data-driven approach to capitalizing on short-term bullish reversals.