Cosmos/Tether Market Overview for 2025-10-26

• ATOMUSDT surged from 3.13 to 3.24 over 24 hours, driven by strong volume in the last 18 hours.
• A bullish engulfing pattern emerged around 08:15 ET, followed by a 1.3% rally in the next hour.
• RSI overbought above 75 and MACD crossed positive, suggesting momentum could stall soon.
• Volatility expanded as Bollinger Bands widened post 09:30 ET, confirming breakouts.
• Turnover surged 42% in the final 6 hours, aligning with higher prices and confirming strength.

Cosmos/Tether (ATOMUSDT) opened at 3.13 on 2025-10-25 at 12:00 ET and closed at 3.24 by 12:00 ET the next day. The 24-hour high reached 3.245, while the low touched 3.117. Total volume traded was 441,039.52 ATOM, and notional turnover amounted to approximately $1,403,474. The pair experienced a sharp upward trend driven by strong buying momentum in the early hours of 26 October.

Structure & Formations

The price action displayed multiple bullish formations, with a strong engulfing candle appearing at 08:15 ET, signaling a reversal from a prior downward trend. A second bullish signal emerged at 11:45 ET, as the price broke out above a consolidation range. Key support levels held at 3.15 and 3.19, while resistance was effectively breached at 3.21 and 3.24. The formation of these patterns, coupled with strong volume, suggests a potential continuation of the bullish phase for the next 24–48 hours.

Moving Averages & Momentum

On the 15-minute chart, the 20-period and 50-period moving averages crossed in favor of the bulls around 09:00 ET, confirming an upward shift in sentiment. The daily chart showed the 50-period MA at 3.16, below the 200-period MA, indicating a medium-term bullish trend. The MACD histogram turned positive at 08:45 ET and showed increasing divergence, aligning with the RSI, which pushed into overbought territory above 75. Both indicators suggest a potential correction could occur if buying pressure wanes, but as of the close, momentum remains intact.

Bollinger Bands & Volatility

Volatility expanded as the Bollinger Bands widened from a 0.007 range to 0.012 by 10:30 ET. The price action remained within the upper band for most of the day, with the exception of a brief pullback in the 03:15–03:45 ET window. This suggests that the upward move has been supported by strong momentum and consistent buying. The narrowing of the bands in the early morning hours hinted at a consolidation phase before the breakout, now confirmed by the price action and volume.

Volume & Turnover

Volume surged to over 105k ATOM at 08:15 ET during the bullish engulfing candle and remained above average for the remainder of the day. The notional turnover increased in tandem with the price, peaking at $111,799 in the final 18 hours. The alignment between volume and price movement suggests strong conviction among traders. However, a slight divergence in the last hour of the 24-hour period, where volume dipped slightly despite a modest price increase, could indicate a temporary slowdown in buying pressure.

Fibonacci Retracements

Fibonacci retracement levels applied to the recent 15-minute swing from 3.117 to 3.245 showed the price testing the 61.8% level at 3.205 before pushing higher. On the daily chart, the 50% Fibonacci level was at 3.15, which acted as a key support. The 78.6% level at 3.203 appears to be a potential resistance zone ahead, where a pullback could occur if buyers become exhausted.

Backtest Hypothesis

The backtesting strategy relies on identifying bullish engulfing patterns and holding positions for three days. These signals typically occur at key support levels and during periods of low volatility, making them ideal entry points for a short-term trade. Over the past 24 hours, two such signals were confirmed at 08:15 and 11:45 ET. A successful backtest would require clean data from these timestamps to assess entry, exit, and stop-loss points. Given the failure in extracting the signal dates automatically, manual confirmation of these times is critical for accurate results.