Wormhole/Tether (WUSDT) Market Overview: Volatile 24-Hour Decline with Bearish Technical Confirmation

• Price dropped sharply from 0.0944 to 0.0895 amid high volume and volatile swings.
• RSI and MACD signaled bearish momentum, with RSI nearing oversold territory.
• Key support levels at 0.0915 and 0.0895 were tested, with a bearish breakdown observed.
• Volume spiked during the late-night decline, with divergence noted between price and turnover.
• A 15-minute bearish engulfing pattern formed near 0.0927, confirming downward bias.

The Wormhole/Tether (WUSDT) pair opened at 0.0935 on 2025-09-13 12:00 ET and closed at 0.0895 by 2025-09-14 12:00 ET, reaching a high of 0.0944 and a low of 0.0889. Total volume for the 24-hour window was 48,719,207.3 units, with total turnover at 4,243,655.6 USD. The asset experienced a pronounced bearish move driven by high-volume bearish swings and confirmed by key technical indicators.

Structure & Formations

A sharp bearish trend unfolded throughout the 24-hour period, with a notable bearish engulfing pattern forming near 0.0927 on the 15-minute chart. This pattern, combined with a breakdown below the 0.0915 support level, signaled increased bearish bias. A doji candle appeared near 0.0910, suggesting short-term indecision, but the price quickly resumed its downward trajectory. Key resistance levels include 0.0932 and 0.0941, while critical support levels are 0.0895 and 0.0889.

Moving Averages and Momentum Indicators

On the 15-minute chart, the 20-period and 50-period moving averages remained bearishly aligned, with the price trading well below both. The 20-period MA at 0.0928 and 50-period MA at 0.0931 reinforced the downward bias. MACD showed a bearish crossover, with the histogram contracting slightly toward the end of the period, indicating decreasing momentum. RSI reached oversold territory near 28 by the close, suggesting potential short-term exhaustion and hinting at a possible near-term bounce, though the overall trend remains bearish.

Bollinger Bands and Volatility

Volatility expanded significantly as the price moved from 0.0944 to 0.0895, pushing the bands wider. The price frequently tested the lower band, particularly during the late-night and early morning hours. A retraction of volatility was observed in the final 12 hours, with the price lingering near the lower band, signaling continued bearish pressure. The 20-period Bollinger Band width expanded by over 15%, highlighting the heightened risk profile.

Volume and Turnover

Volume surged during the late-night and early morning decline, peaking at over 1.1 million units around 04:00–05:00 ET, coinciding with a breakdown below key support at 0.0915. Notional turnover confirmed the bearish move, with a divergence between the final 15-minute candles showing strong volume but minimal price movement—suggesting a potential consolidation phase. The overall volume profile was bearish, with more volume printing on the decline than the rally.

Fibonacci Retracements

Applying Fibonacci retracements to the recent 15-minute swing from 0.0944 to 0.0895, key levels include 38.2% at 0.0923 and 61.8% at 0.0909. The 38.2% level failed to hold, confirming bearish momentum, while the 61.8% level is currently a potential target for a short-term bounce. On the daily chart, a 61.8% retracement level at 0.0920 could offer a near-term target for a counter-trend move, though the overall bearish trend appears intact.

Backtest Hypothesis

The backtesting strategy involves entering short positions when WUSDT closes below the 20-period and 50-period moving averages on the 15-minute chart, with a stop-loss placed just above the nearest resistance and a target set at the 61.8% Fibonacci retracement level of the recent bearish swing. A long bias is taken when price rebounds above the 50-period MA and MACD turns bullish, with stop-loss below the recent swing low. This strategy aims to capitalize on high-probability mean reversion and trend-following opportunities, leveraging the strong bearish bias and key Fibonacci levels identified in the analysis.