Market Overview: Metis/Tether (METISUSDT)

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• Price closed near support at $8.70–8.75, with a 24-hour low of $8.52 and high of $9.29
• Momentum reversed after hitting a 24-hour RSI 80+, signaling overbought conditions near $9.20
• Volatility increased sharply after 01:00 ET, with volume spiking to ~9,000 METIS and turnover peaking at $83,000
• Candlestick consolidation formed a bearish harami and a bullish engulfing pattern around key resistance at $9.00
• Bollinger Bands expanded during the late-night rally, indicating high volatility and trend-following potential

Metis/Tether (METISUSDT) opened at $8.80 at 12:00 ET on October 30, 2025, and traded as low as $8.52 before surging to a 24-hour high of $9.29 by 04:30 ET. The pair closed at $9.11 at 12:00 ET on October 31. Total volume amounted to ~42,500 METIS, with a notional turnover of approximately $378,000 over the period.

Structure & Formations

Price action displayed a textbook consolidation pattern between $8.60 and $9.00, with key support at $8.70–8.75 and resistance forming around $9.00–9.10. A bearish harami was visible at the start of the consolidation, followed by a bullish engulfing pattern suggesting a potential reversal. A small doji appeared near $8.76 at 19:30 ET, signaling indecision. These patterns suggest that traders may find the $9.00 level as a key entry point, with a break above indicating further upward potential.

Moving Averages & Momentum

The 20-period and 50-period moving averages on the 15-minute chart diverged slightly during the late-night rally, with price staying above the 50-period line. The RSI approached overbought territory multiple times, hitting 80+ during the rally from $9.00 to $9.29, suggesting a potential pullback. MACD showed a positive divergence with price, confirming the upward momentum. The 200-period daily moving average lies near $8.90, and a close above this could signal a stronger bullish bias.

Volatility & Fibonacci Levels

Bollinger Bands expanded significantly during the rally, with price touching the upper band at $9.29, indicating heightened volatility. Price retested the 61.8% Fibonacci retracement level at $9.00 multiple times, with mixed results. The 38.2% level at $8.85 held briefly before price broke through again. Volume and turnover spiked during the late-night and early-morning hours, with a divergence in turnover from price suggesting caution for short-term traders.

Backtest Hypothesis

The backtest strategy described assumes a price-based signal using daily closes and forces liquidation after five trading days. While not including transaction costs or slippage, the results reflect raw price momentum. Given the current price behavior—particularly the recent overbought RSI and bullish engulfing pattern—a similar strategy may benefit from entering longs near $9.00 and holding for up to five days, with a target near $9.25. A stop-loss below $8.80 could help manage downside risk.

Forward Outlook & Risk Considerations

Looking ahead, the 24-hour period is likely to see renewed test of the $9.00–9.10 resistance zone, with a potential break to $9.30–9.40 if bulls gain control. However, a failure to hold above $8.90 could invite a pullback toward $8.80–8.75, with further weakness risking the $8.60–8.50 support cluster. Traders should remain cautious of potential volatility from diverging momentum indicators and Fibonacci retests.