Market Overview for SafePal/Tether (SFPUSDT)

Summary
• Price dropped sharply from 0.3582 to 0.3514 during early ET hours, with a partial recovery back to 0.3562 by 21:00 ET.
• A notable bearish engulfing pattern formed at 18:00 ET, followed by a consolidation phase between 0.3536 and 0.3563.
• RSI hit oversold territory twice, suggesting a potential reversal, though volume failed to confirm bullish momentum.
• Volatility expanded during the early ET sell-off but contracted during consolidation, indicating temporary indecision in the market.

Market Overview

SafePal/Tether (SFPUSDT) opened at 0.3582 on 2026-01-06 at 12:00 ET, reaching a high of 0.3619 and a low of 0.346 before closing at 0.3498 on 2026-01-07 at 12:00 ET. Total volume was 234,192.0 units, with a notional turnover of approximately $82,247.

Structure and Patterns

A bearish engulfing candle formed at 18:00 ET, signaling a shift in sentiment from bullish to bearish. Price consolidation followed, forming a tight range between 0.3536 and 0.3563. A doji appeared at 22:45 ET, highlighting indecision at the upper end of the consolidation.

Trend and Averages

On the 5-minute chart, the 20-period and 50-period moving averages remained bearishly aligned, with price closing below both. The 50-period moving average acted as a key resistance line during the recovery phase.

Momentum Indicators

The RSI dipped into oversold territory twice, at 05:15 ET and 14:00 ET, but failed to trigger a strong bullish response. MACD remained in negative territory, with a narrow histogram indicating weak bearish momentum.

Volatility and Bollinger Bands

Bollinger Bands expanded during the early ET sell-off, with price touching the lower band at 0.346. The bands later contracted during consolidation, suggesting reduced volatility and potential for a breakout or continuation.

Volume and Turnover

Volume spiked during the early ET breakdown and again during the consolidation phase. However, turnover failed to confirm the strength of the price move, hinting at a lack of conviction.

Fibonacci Retracements

On the 5-minute chart, key retracement levels at 0.3534 (38.2%) and 0.3506 (61.8%) were tested multiple times. The price appears to find temporary support near 0.3534, suggesting a possible bounce.

Price may test the 0.3534 level again in the next 24 hours. A break above 0.3565 could signal a short-term bullish reversal, though the prevailing bearish bias remains intact. Investors should monitor for divergence between price and volume.