Wormhole/Tether (WUSDT) Market Overview - 2025-11-08

Summary
• Price tested key resistance near 0.0675 but retreated to close at 0.0633.
• High volatility seen in midday, with a 15-minute high of 0.0681.
• Volume spiked during 19:00–21:00 ET, coinciding with bearish reversal.

Wormhole/Tether (WUSDT) opened at 0.0637 on 2025-11-07 at 12:00 ET and closed at 0.0633 on 2025-11-08 at 12:00 ET, reaching a 24-hour high of 0.0681 and a low of 0.0620. Total volume reached 21,725,879.3 with an estimated turnover of approximately $1,428,088 (based on average rate of ~0.0658).

The price action over the last 24 hours displayed a bearish reversal, particularly after reaching a peak around 21:15 ET, where a key resistance level at 0.0675 failed to hold. A strong bearish engulfing pattern formed between 19:00 and 21:00 ET, suggesting a potential shift in momentum from bullish to bearish. Key support levels were identified at 0.0640 and 0.0630, with a breakdown below 0.0635 indicating increased bearish pressure.

Structure & Formations

Price found resistance at 0.0675 and 0.0681, levels that had previously acted as support earlier in the session. The breakdown below 0.0635, especially in the morning hours of 2025-11-08, confirmed a shift to bearish bias. A bearish engulfing candle on 2025-11-07 at 19:00 ET suggests a key reversal formation, potentially signaling a continuation of the downward trend.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed over in a bearish “death cross” formation around 20:00 ET, reinforcing the downtrend. On the daily chart, the 50-period line is still above the 200-period line, but the 100-period MA is beginning to converge with the 200-period MA, indicating potential consolidation or a bearish crossover.

MACD & RSI

MACD lines turned negative and crossed below the signal line around 20:00–21:00 ET, aligning with the bearish reversal. RSI dropped from overbought territory (70+) to bearish territory (30–), reinforcing the weakening momentum. RSI remains in neutral to weak territory, suggesting the bearish trend may have room to extend, but caution is advised for a potential rebound.

Bollinger Bands

Price was squeezed between the upper and lower bands during the afternoon of 2025-11-07, suggesting a period of low volatility prior to the breakout attempt. The move above the upper band failed, and the subsequent drop saw price settle near the lower band by 2025-11-08 at 12:00 ET. This indicates a high volatility expansion followed by a consolidation phase, with the lower band acting as a potential support level.

Volume & Turnover

Volume spiked sharply between 19:00 and 21:00 ET, coinciding with the bearish engulfing pattern. This volume surge confirmed the bearish reversal rather than rejecting it. Total turnover increased in tandem with volume, indicating strong conviction in the downward move. Divergences were not evident, but the alignment of price and volume supported the bearish narrative.

Fibonacci Retracements

Key Fibonacci levels were observed at 0.0646 (38.2%), 0.0635 (50%), and 0.0623 (61.8%) based on the 0.0681–0.0620 swing. Price closed near the 50% retrace level, suggesting potential for a continuation of the move to 0.0620 or a possible bounce from 0.0630–0.0635.

Backtest Hypothesis

For a potential backtesting strategy, focusing on bearish engulfing patterns over the past year may provide actionable sell signals. A sell trigger could be placed at the close of the engulfing candle, with a stop loss placed just above the high of the pattern and a take-profit target at a key Fibonacci level or support. This approach could be validated using a known symbol such as USDT-USD, allowing for a more robust and replicable backtest. Performance metrics including win rate, average return per trade, and risk-adjusted returns would offer insight into the viability of this approach over the long term.