Market Overview for Mira/Tether (MIRAUSDT) on 2025-10-05

• Price for Mira/Tether surged above $0.61 after a strong 24-hour rally from $0.596.
• Volatility spiked midday ET, with Bollinger Bands widening and volume surging above 500,000.
• RSI hit overbought territory in early morning ET, suggesting potential pullback risk.
• A bullish engulfing pattern formed between 02:45 and 03:00 ET, confirming upward momentum.
• Turnover remained elevated in late trading hours, but volume started to moderate in the final candle.

Market Opening and Price Action

Mira/Tether (MIRAUSDT) opened at $0.6059 on 2025-10-04 at 12:00 ET, reached a high of $0.6271, and dropped to a low of $0.5864 before closing at $0.6051 as of 12:00 ET on 2025-10-05. The total traded volume over 24 hours was approximately 23,814,728.1, while notional turnover amounted to $14,471,814.64. The pair showed a strong bullish bias in the late evening and early morning hours before consolidation.

Structure & Formations

The price action displayed a bullish engulfing pattern starting around 02:45 ET, where a small bearish candle was followed by a significantly larger bullish candle, indicating a reversal. Key support levels were identified at $0.5962, $0.6003, and $0.6051, while resistance levels were at $0.6115, $0.6165, and $0.6209. A doji formed near $0.6101 in midday trading, hinting at indecision among traders before the price resumed its upward trend.

Moving Averages and Momentum

On the 15-minute chart, the 20-period and 50-period moving averages crossed above the price during the surge in the early morning hours, confirming the bullish momentum. The 50-period moving average acted as a dynamic support level, with the price bouncing off it around $0.6062 and $0.6092. For the daily chart, the 50, 100, and 200-period moving averages all remained in ascending order, reinforcing the bullish trend over a longer time frame.

MACD lines showed a strong positive divergence, with the histogram expanding in the early morning hours as volume increased. RSI crossed into overbought territory above 70 between 00:45 and 01:00 ET, suggesting a short-term pullback could be imminent. However, the RSI remained elevated for much of the session, indicating sustained buying pressure.

Bollinger Bands and Volatility

Bollinger Bands widened significantly during the price rally, reflecting increased volatility. Price traded above the upper band from 00:15 to 01:00 ET, indicating a strong breakout. Later, the price retracted toward the middle band, suggesting a potential consolidation phase. The narrowing of the bands in late afternoon trading suggested a period of consolidation and reduced volatility.

Volume & Turnover Dynamics

Volume surged during the critical price breakout in the early morning hours, with over 600,000 units traded in the hour ending at 01:00 ET. Notional turnover spiked simultaneously, confirming the strength of the price move. However, volume started to decline slightly in the final candle of the session, indicating a potential pause in the momentum.

Fibonacci retracement levels were also relevant to the price action. The 61.8% retracement level of the swing from $0.5864 to $0.6271 was at $0.6116, where the price found resistance. This suggests that if the price continues to rise, the next target could be the 78.6% retracement level at $0.6244.

Backtest Hypothesis

A potential backtesting strategy could involve entering long positions when price breaks above the upper Bollinger Band, especially when supported by bullish candlestick patterns and increasing volume. Given the recent move above the upper band and the confirmation by a bullish engulfing pattern, a strategy that combines Bollinger Band breakout signals with volume confirmation could be tested. Such a setup would aim to capture continuation moves during high-volatility periods, as observed in the early morning hours of the 24-hour session.