Wormhole/Tether Market Overview

• Wormhole/Tether (WUSDT) declined by 6.3% over 24 hours, closing below key support at 0.1250.
• Momentum weakened as RSI dipped to oversold levels and volume surged at lows.
• Bollinger Bands tightened before a sharp selloff, suggesting increased volatility risk.
• Key support at 0.1173 and resistance at 0.1293 identified from 15-min and daily charts.
• Divergence between price and turnover suggests potential for consolidation or reversal.

The Wormhole/Tether (WUSDT) pair opened at 0.1295 on 2025-10-07 12:00 ET and closed at 0.1161 the next day at 12:00 ET, with a high of 0.1304 and a low of 0.1141. Total volume reached 36,400,601.65, while notional turnover amounted to 4,542,374.06. Price action suggests bearish momentum and potential for a rebound test of key support.

Structure & Formations

Price action over the 24-hour period revealed a bearish continuation pattern, particularly in the late evening to overnight session, where WUSDT broke below key support at 0.1250 and tested the 0.1173 level. Notable patterns included a bearish engulfing candle at 0.1255–0.1247 and a morning doji near 0.1238, signaling indecision before further declines. The breakdown from 0.1255 to 0.1173 suggests that the 0.1173 level may now serve as short-term support or a potential pivot point.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages both trended downward, confirming the bearish bias. The 20-SMA crossed below the 50-SMA earlier in the evening, reinforcing a potential short-term trend reversal. On the daily chart, the 50/100/200 EMA lines remained in a descending alignment, suggesting a continuation of the broader downtrend for at least the next 24 hours.

MACD & RSI

The MACD line turned negative and crossed below the signal line during the overnight selloff, confirming bearish momentum. RSI dipped below 30, reaching 23 during the late morning, indicating overbought conditions. However, divergence between RSI and price action, especially in the 0.1230–0.1247 range, suggests a potential rebound could be on the cards.

Bollinger Bands

Volatility expanded during the overnight selloff, with the lower Bollinger Band breaking below the 0.1200 level. Price closed near the lower band at 0.1161, suggesting it could either rebound off this level or continue lower. The narrow band width before the selloff indicates a potential breakout that was confirmed to the downside.

Volume & Turnover

Volume spiked significantly during the late evening and overnight session as the price broke below key support levels. This suggests conviction in the move lower. Notional turnover also rose sharply during this period, aligning with the price action. Divergence emerged in the morning, with volume declining as price recovered slightly, suggesting that the short-term rally may lack conviction.

Fibonacci Retracements

Applying Fibonacci to the recent 15-minute swing from 0.1293 to 0.1247, key levels at 0.1266 (38.2%), 0.1254 (50%), and 0.1242 (61.8%) were all tested or broken. The broader daily move from 0.1304 to 0.1141 shows critical levels at 0.1263 (38.2%), 0.1225 (50%), and 0.1186 (61.8%). These levels could act as dynamic pivots in the coming 24 hours.

Backtest Hypothesis

Given the observed breakdown from 0.1250 and the confirmation of bearish momentum through volume, MACD, and RSI, a potential backtest strategy could involve a short entry at 0.1173 with a stop above 0.1195 and a target at 0.1141. This setup could be triggered on a close below the 15-minute 20-SMA and a RSI reading below 30. The strategy would be tested across multiple timeframes to evaluate its reliability under similar volatility and volume conditions.