FORMUSDC Market Overview: Bearish Momentum and Oversold Signals Emerge

Summary
• Price collapsed sharply after a 17:00 ET breakout, forming a bearish engulfing pattern.
• Volume surged during the 18:15 ET selloff, confirming bearish sentiment.
• RSI and MACD suggest oversold conditions, but momentum remains negative.
• Bollinger Bands show moderate volatility, with price testing lower boundaries.
• Fibonacci levels indicate potential support near 0.3191 and resistance at 0.3245–0.3268.

FORMUSDC opened at $0.3340 on 2025-12-29 at 12:00 ET and closed at $0.3219 at 12:00 ET-1. The pair reached a high of $0.3394 and a low of $0.3159 over the 24-hour period. Total volume traded was 118,517.0 units, with a notional turnover of approximately $38,906.

Structure and Candlestick Patterns

A bearish engulfing pattern formed at 17:30 ET as price surged from $0.3348 to $0.3375 before retreating below the prior candle’s open. A deep bearish move from $0.3375 to $0.3268 in the 18:15–18:30 ET timeframe marked a key breakdown. The formation of a doji around $0.3245–0.3246 at 22:30 ET suggested indecision.

Moving Averages and MACD

On the 5-minute chart, the 20-period MA crossed below the 50-period MA, indicating a short-term bearish bias. The MACD line crossed into negative territory, with a bearish divergence forming during the 19:30–21:00 ET selloff. A negative histogram reinforced the bearish momentum.

RSI and Overbought/Oversold Conditions

The RSI dropped below 30 by 21:15 ET, signaling oversold territory. However, price failed to recover despite the level, suggesting further downward bias. Oversold readings were accompanied by continued selling pressure, particularly during the 22:45 ET and 02:00 ET selloffs.

Bollinger Bands and Volatility

Bollinger Bands showed moderate expansion during the 18:15–20:30 ET sell-off, with price trading near the lower band for much of the 20:00–04:00 ET window. Price retested the lower boundary multiple times but lacked the strength to rebound.

Volume and Turnover Analysis

Volume spiked during the 18:15 ET session with 37,725.4 units traded, coinciding with a large downward move. Turnover during that period reached $1,240.98, the highest of the day. Divergence emerged in the 01:15–01:45 ET window, where volume waned despite continued price declines.

Key Fibonacci Levels

A 61.8% Fibonacci retracement level at $0.3236 provided temporary support but failed to hold. On the daily chart, the 38.2% retracement level at $0.3268 appears as a near-term resistance.

Looking ahead, buyers may test the 0.3191 level for support, while a retest of the 0.3245–0.3268 range could trigger further selling. Investors should monitor volume and RSI divergence for signs of a potential reversal, but bearish momentum could persist into the next 24-hour window.