Market Overview for Phala Network/Tether (PHAUSDT) on 2025-10-05

• Price climbed 0.1001–0.1050 before consolidating near 0.1022–0.1034.
• Strong volume spikes occurred around 0.1025–0.1030 during the overnight rally.
• RSI overbought conditions observed in early morning, followed by a bearish divergence.
• Bollinger Bands showed a sharp expansion during the 0.1030–0.1047 upswing.
• A bullish engulfing pattern formed at 0.1015–0.1022, confirming short-term strength.

Phala Network/Tether (PHAUSDT) opened at 0.0995 on 2025-10-04 at 12:00 ET and reached a high of 0.1050 before closing at 0.1022 at 12:00 ET on 2025-10-05. The 24-hour volume amounted to 32,948,000, while total turnover was approximately $3,300,000. Price displayed clear bullish momentum and consolidation in the last hours.

Structure & Formations

The 24-hour chart showed a strong bullish bias with a key support level forming at 0.1006–0.1015 and resistance at 0.1030–0.1035. A bullish engulfing pattern appeared around 0.1015–0.1022, suggesting a short-term reversal from bearish to bullish. The session also featured several inside bars and a doji near 0.1025–0.1028, indicating indecision following the morning’s break above 0.1030. The price action appears to be testing critical levels without a definitive breakout, suggesting a consolidation phase.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed positively around 0.1018–0.1022, forming a potential golden cross. On the daily timeframe, the 50-period MA remains below the 200-period MA, indicating a broader bearish trend despite the short-term bullish reversal. The price currently sits above the 50-period MA on the 15-minute chart, hinting at a possible continuation of the rally.

MACD & RSI

The MACD showed a strong bullish crossover in the early morning hours, followed by a contraction as the rally stalled near 0.1035. The histogram peaked at 0.0012 before showing a bearish divergence in the last four hours of the session. The RSI entered overbought territory above 65 during the rally to 0.1047, then fell sharply below 50 by the 11:00 AM ET close. This suggests weakening momentum and a potential pullback or consolidation in the near term.

Bollinger Bands

Bollinger Bands displayed a wide expansion during the 0.1025–0.1047 upswing, indicating heightened volatility. Price traded near the upper band for over six hours, confirming strong buying interest. However, the bands have since narrowed slightly, suggesting a possible pause in volatility. If price breaks above the upper band again, it could signal a continuation of the rally. Conversely, a breakdown below the midline would indicate a return to consolidation or a pullback.

Volume & Turnover

The session’s highest volume occurred during the 0.1025–0.1047 rally, with a 20-minute candle at 0.1035–0.1037 recording 415,168 contracts traded. This was also the peak of the 24-hour turnover, amounting to approximately $420,000. Notably, volume and price diverged in the last four hours, as price fell while volume remained moderate, signaling potential exhaustion among buyers. This divergence raises questions about the sustainability of the current rally.

Fibonacci Retracements

Applying Fibonacci retracement to the 0.1015–0.1047 swing, key levels at 0.1033 (38.2%), 0.1039 (50%), and 0.1045 (61.8%) were all tested. The price stalled near 0.1044–0.1045 during the morning hours before retreating to 0.1033–0.1035. This suggests that buyers are active at the 38.2% level, while 0.1045 remains a potential overhead resistance. On the daily chart, the 0.1015–0.1050 move points to a possible extension at 0.1060 if the bullish trend continues.

Backtest Hypothesis

The backtesting strategy proposed is based on a combination of bullish engulfing patterns and RSI overbought divergence as a potential sell signal. A long entry could be placed when a bullish engulfing pattern is confirmed above a key support level, with an initial stop below the pattern’s low. A sell signal is then generated when RSI shows a bearish divergence (i.e., higher highs in price but lower highs in RSI) after reaching overbought territory. Given the recent formation of a bullish engulfing pattern at 0.1015–0.1022 and a subsequent bearish RSI divergence at 0.1025–0.1030, this scenario aligns with the strategy’s entry and exit conditions. If validated historically, this approach could be useful for identifying high-probability reversal points in a volatile market like PHAUSDT.