Market Overview for Hooked Protocol/Tether (HOOKUSDT) — 2025-10-06

• HOOKUSDT dropped to 0.0911 intraday before recovering to close near 0.1006.
• High volatility observed from ~17:45–19:00 ET, with volume spiking above 34 million.
• RSI approached oversold levels during the selloff but has since returned toward the 50 mark.
• Key resistance now appears at 0.1020–0.1025, with support at 0.0980–0.0985.
• Price action suggests consolidation after a sharp correction, with potential for a rebound.

Market Summary and Price Action

At 12:00 ET–1 on 2025-10-06, Hooked Protocol/Tether (HOOKUSDT) opened at 0.1107 and traded as low as 0.0911 during the session. The pair closed at 0.1006 at 12:00 ET, with a high of 0.1202 and a low of 0.0911. Total volume for the 24-hour window was 235,701,584.5, and notional turnover amounted to approximately 23,726,800. The significant selloff occurred between 17:45–19:00 ET, where the price collapsed from 0.1182 to 0.0950 in a single 15-minute candle. This was followed by a gradual rebound and consolidation into the next day.

Structure & Formations

The price action displayed a large bearish engulfing pattern during the sharp correction on October 5, with a close near the session low. This was followed by a series of smaller bullish hammer and doji patterns indicating potential stabilisation. Key support levels appear at 0.0980 and 0.0950, while resistance levels are forming at 0.1020 and 0.1040. The 0.1000–0.1010 range is currently acting as a consolidation area with mixed candlestick signals suggesting indecision.

Moving Averages and Momentum

On the 15-minute chart, the price is currently above the 20-period moving average but below the 50-period line. This suggests that the short-term trend remains neutral to slightly bearish, while the medium-term trend is more supportive. The daily chart indicates the price is above the 50- and 100-day moving averages but below the 200-day line, indicating a broader bearish bias over the long term. MACD showed a bearish crossover during the selloff but has since flattened, suggesting momentum is slowing.

The RSI reached oversold levels during the intraday selloff, dipping below 30. It has since recovered to around 49, suggesting that the correction might have ended or is pausing for now. The indicator is still within the neutral range, indicating that a strong bounce or further decline is still possible depending on volume and order flow.

Variability and Volume

Bollinger Bands expanded significantly during the sharp selloff, with price hitting the lower band as volatility spiked. Price has since retraced into the middle band. This suggests that volatility has started to compress after the expansion, which could signal the end of a volatile phase. The narrowing of bands may indicate a period of consolidation or a possible reversal.

Volume spiked sharply during the selloff, peaking at 34,562,596.6 in the 18:00 ET candle, confirming the bearish move. However, volume has since declined, which could indicate a lack of conviction in the current price action. Notional turnover also dropped, suggesting that the market may be waiting for a catalyst to break out of the consolidation phase.

Backtest Hypothesis

The backtesting strategy proposed relies on a combination of RSI divergence and volume confirmation during sharp selloffs. In this case, the RSI reached oversold levels, and volume spiked, confirming the bearish momentum. A buy setup could be considered if the price closes above the 0.1025 resistance level with increased volume and a positive MACD crossover. A stop-loss could be placed below 0.0980, and a target could be set at 0.1050 or 0.1070 depending on the strength of the rebound.