Market Overview for The Sandbox/Tether (SANDUSDT) – 2025-10-09

• Price declined from a high of $0.2769 to a low of $0.2592, closing near $0.2618 at 12:00 ET.
• Momentum weakened as RSI dropped below 40 and entered oversold territory during the night.
• Volatility expanded during the early morning drop, with high turnover on the decline.
• A bullish reversal candle emerged near key support at $0.2600, suggesting potential short-term bounce.
• Bollinger Bands widened during the selloff, signaling a period of high volatility.

At 12:00 ET-1 on 2025-10-08, The Sandbox/Tether (SANDUSDT) opened at $0.2682 and reached a high of $0.2769 before declining to a low of $0.2592. It closed at $0.2618 by 12:00 ET on 2025-10-09. The 24-hour volume amounted to 11,400,285.0 units, with a notional turnover of $2,980,706.53.

Structure & Formations

Price action formed a bearish trend after breaking key resistance levels around $0.2750 and $0.2769. The selloff continued through the night, reaching support levels at $0.2600 and $0.2592, where a bullish reversal candle formed with a long lower shadow. This suggests traders are beginning to show interest in the pair at these levels, potentially setting up for a short-term bounce. A bearish engulfing pattern was visible at $0.2750, and a doji appeared at the low, signaling indecision and potential reversal.

Moving Averages and MACD

On the 15-minute chart, price has closed below the 20-period and 50-period moving averages, reinforcing a bearish bias. The MACD line turned negative and crossed below the signal line during the early hours, indicating bearish momentum. RSI dropped below 40 and entered oversold territory, suggesting a possible near-term reversal, though caution is warranted as overbought levels are not yet breached.

Bollinger Bands and Fibonacci Retracements

Bollinger Bands expanded significantly during the selloff, reflecting heightened volatility. Price has spent a considerable portion of the session near the lower band, indicating potential oversold conditions. Fibonacci retracement levels show the 61.8% level at $0.2636 as the next potential resistance, while the 38.2% level at $0.2607 acts as a near-term support. Price may test these levels in the next 24 hours.

Volume and Turnover

Volume spiked during the early morning selloff as price dropped from $0.2666 to $0.2602, with the most significant turnover occurring between 08:15–08:30 ET. The volume and price action moved in sync, confirming the bearish sentiment. However, a divergence appears after 09:00 ET, with volume declining as price continued to consolidate near $0.2618, hinting at a possible near-term bottoming process.

Backtest Hypothesis

The proposed backtesting strategy focuses on identifying a bullish reversal pattern near strong support levels, with RSI below 30 and price closing above the lower Bollinger Band. A buy signal is triggered when the 20-period moving average crosses above the 50-period line and volume increases on the reversal candle. A stop-loss is placed below the last swing low, and a take-profit target is set at the next Fibonacci retracement level. This approach is consistent with the current setup, where a bullish reversal candle emerged near $0.2600, RSI is near oversold levels, and the lower Bollinger Band is being tested.