Market Overview for Metis/Tether (METISUSDT)

Summary
• Price action showed a bearish breakdown in early ET, followed by a partial recovery in overnight hours.
• Volume surged below $5.40, confirming a pullback, but failed to push above key resistance at $5.49.
• RSI entered oversold territory near $5.35, hinting at potential near-term buying interest.
• Bollinger Bands constricted in late ET, suggesting heightened volatility ahead.

Market Overview

At 12:00 ET – 1, Metis/Tether (METISUSDT) opened at $5.49, reached a high of $5.50, and fell to a low of $5.30 before closing at $5.38 at 12:00 ET. The 24-hour volume totaled 38,498.95 METIS, with a notional turnover of $196,080.

Structure & Formations

The price formed a key bearish breakdown below $5.45 in the early ET session, marked by a long lower wick and high volume. This was followed by a bullish retracement in overnight hours, with a potential bullish engulfing pattern forming around $5.40–$5.38. A key support level appears to have been established around $5.35–$5.38, where a long wick and rising volume confirmed a buying interest.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages both showed a bearish crossover, with price failing to close above the 20 MA. On the daily chart, the 50-period MA currently resides at $5.43, and the 200-period MA at $5.38, suggesting a tightening convergence that could lead to a directional breakout.

Momentum Indicators

The MACD crossed into negative territory during the breakdown, confirming bearish momentum. The RSI fell into oversold territory near $5.35, indicating a possible short-term rebound. However, divergence between RSI and price during the retracement suggests caution, as the rebound lacks strong confirmation from volume.

Bollinger Bands

Volatility decreased significantly in the late ET and overnight hours, with Bollinger Bands narrowing between $5.35 and $5.40. This period of contraction suggests a potential breakout is looming. Price has since remained near the upper band during the morning recovery, signaling potential short-term overbought conditions.

Volume & Turnover

Volume spiked during the breakdown below $5.40 and during the early retracement above $5.38, but the latter lacked confirmation from turnover. A divergence appeared in the late morning, with price rising while turnover remained subdued, suggesting the recovery may lack conviction.

Fibonacci Retracements

Key Fibonacci levels on the 5-minute chart aligned with the $5.45 (38.2%), $5.43 (50%), and $5.41 (61.8%) retracement levels. On the daily chart, the $5.45–$5.38 swing aligns with the 38.2% retracement level at $5.41, suggesting a potential near-term pivot.

The price could test the $5.45–$5.49 resistance zone in the next 24 hours, but bearish momentum and weak confirmation during the retracement suggest a continuation of the range-bound pattern. Investors should remain cautious and watch for a breakdown below $5.35 as a key risk.