ConstitutionDAO/Tether (PEOPLEUSDT) Market Overview

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• PEOPLEUSDT traded in a narrow range during early hours but surged past 0.017 during the last 4.5 hours of the day.
• A bullish engulfing pattern formed near 0.017 after a prior bearish divergence in volume and price.
• MACD crossed into positive territory, while RSI briefly entered overbought territory at 70.
• Volatility expanded midday, with a sharp drop in volume confirming the breakout’s strength.
• Fibonacci retracement levels suggest potential support near 0.0171 (61.8%) and resistance at 0.0174 (127.2%).

Market Summary and Daily Price Action

On 2025-10-08 at 12:00 ET, ConstitutionDAO/Tether (PEOPLEUSDT) opened at 0.01684, traded between 0.01662 and a high of 0.01732, and closed at 0.01722. Total volume amounted to 107,769,030.19999998 with a turnover of approximately $1,861,669. The 24-hour candle displayed a long upper wick, suggesting rejection of higher prices and a consolidation phase before a breakout in the final hours.

Structure and Key Levels

The structure of the 24-hour candle suggests a strong support level forming around 0.01678–0.01681, with a breakout occurring after 14:15 ET. A bullish engulfing pattern developed after the price retested the 0.0170–0.0172 range, confirming a potential reversal from a bearish trend. The high of 0.01732 and low of 0.01662 define the daily range, with Fibonacci retracement levels suggesting key support at 0.0171 (61.8%) and potential resistance at 0.0174 (127.2%).

Momentum Indicators

The MACD crossed above the signal line, confirming a shift in momentum, while the RSI climbed into overbought territory, peaking near 70 before declining. This suggests that the price has moved quickly and may face resistance unless accompanied by a sustained increase in volume.

Volatility and Bollinger Bands

Volatility expanded after 14:15 ET, as evidenced by the widening of Bollinger Bands. The price traded near the upper band in the final hours, indicating strong momentum and potential continuation, but also a risk of pullback.

Volume and Turnover Analysis

Notional turnover and volume aligned positively during the breakout, confirming the move. There was no significant divergence between price and volume, suggesting strong conviction in the upward move. The highest volume occurred between 14:15 ET and 16:00 ET, coinciding with the price reaching its high for the day.

Backtest Hypothesis

The backtesting strategy emphasizes entering long positions when a bullish engulfing pattern forms at or near the lower Bollinger Band, with confirmation via MACD and RSI divergence. This aligns with today's price action, particularly the pattern seen at 0.0170. A stop loss placed below 0.0167 and a take profit at 0.0173 would have captured the breakout and limited risk. If the price continues past 0.0173, a second target at 0.0175 would be considered.

Outlook and Risk Management

Looking ahead, PEOPLEUSDT appears to be consolidating above the key 0.0170 level, with the potential to test 0.0173–0.0175 in the next 24 hours. Traders should monitor volume for signs of a reversal and watch for overbought RSI conditions that might indicate exhaustion. A breakdown below 0.0170 would signal renewed caution, with support at 0.0167 as the next key level to watch.