Wormhole/Tether USDt (WUSDT) Market Overview

• WUSDT rallied to a 24-h high of $0.0799 before retracing to close near $0.0776
• Strong volume-driven move from 01:30–02:15 ET suggests short-term bullish momentum
• RSI and MACD show mixed signals, indicating consolidation after a sharp rise
• Bollinger Bands widened, signaling increased volatility and potential range-bound action
• Key support at $0.0775 and resistance near $0.0784 are critical for near-term direction

Wormhole/Tether USDt (WUSDT) opened at $0.0763 on 2025-09-05 12:00 ET and closed at $0.0776 by 2025-09-06 12:00 ET, reaching a high of $0.0799 and a low of $0.0762 over the period. The 24-hour volume was 50,955,130.0 USD with a turnover of $39,804,620.10.

Structure & Formations

The 24-hour chart for WUSDT shows a bullish engulfing pattern forming between 01:30–02:15 ET, with the price surging from $0.0781 to a high of $0.0799 on increased volume. A subsequent bearish consolidation began from 02:30 ET, pulling the price back into a key support zone at $0.0775–$0.0780. A doji pattern appears at 04:15 ET, signaling indecision. Strong resistance is forming at $0.0784–$0.0786, while support levels are consolidating at $0.0775–$0.0772. The price is currently testing the upper edge of a descending triangle, which could lead to a breakout or a bearish continuation.

Moving Averages & Momentum

On the 15-minute chart, the 20-period SMA crossed above the 50-period SMA in the early hours of the morning, confirming a short-term bullish bias. The 50-period SMA on the daily chart is approaching a key level of $0.0780, aligning with the consolidation phase. The MACD line turned negative in the afternoon, suggesting weakening momentum following the morning’s rally. RSI has declined from overbought territory (80) to a more neutral range (~55), indicating that the recent rally may be running out of steam.

Bollinger Bands & Fibonacci

Bollinger Bands showed a notable expansion from 01:30–03:00 ET as the price surged upward, with WUSDT trading near the upper band. The recent pullback has brought the price back into the middle band, suggesting a return to normal volatility levels. The 38.2% Fibonacci retracement level at $0.0781 is holding firm, while the 61.8% level at $0.0773 has been retested twice, acting as a strong support. These levels could dictate the next major direction of the pair.

Volume & Turnover

Volume spiked to over 3.8 million during the early morning rally, confirming strong conviction in the move higher. However, as the price approached $0.0790, volume began to decline, suggesting a lack of follow-through. The pullback from $0.0799 to $0.0776 was accompanied by moderate volume, indicating a lack of bearish aggression. Turnover has declined in the afternoon, suggesting a possible pause in trading activity or a shift to accumulation phases.

Backtest Hypothesis

The backtest strategy described involves a short-term reversal trade triggered by a bullish engulfing pattern confirmed by a RSI divergence and a break of the 20-period SMA. A long position is opened after a bullish engulfing pattern on a 15-minute chart, with a stop-loss placed below the low of the engulfing pattern and a target at the 38.2% Fibonacci level. This approach aims to capitalize on intraday momentum and mean reversion, particularly in high-volatility environments such as the early morning rally seen in WUSDT. Given the current price action and RSI pullback, the conditions may align with the strategy's entry criteria, offering a potentially favorable risk-reward setup for short-term traders.