Market Overview for SKALE/Tether (SKLUSDT) on 2025-10-10

• Price dropped from 0.02344 to 0.02263 in 24 hours, driven by a sharp decline late in the session.
• RSI moved into oversold territory, suggesting potential for a short-term bounce.
• Bollinger Bands widened sharply during the selloff, indicating heightened volatility.
• Volume spiked in the final 15-minute candle, confirming the bearish move.
• No strong bullish candlestick patterns emerged, but a possible bullish reversal is forming near 0.02263.

At 12:00 ET − 1 on October 9, SKALE/Tether (SKLUSDT) opened at 0.02331 and traded as high as 0.02407 before closing at 0.02263 at 12:00 ET on October 10. Total volume for the 24-hour period was approximately 38.9 million, with a notional turnover of $9.25 million.

Structure & Formations

The price of SKLUSDT exhibited a strong bearish bias throughout the session, forming multiple bearish engulfing patterns and a long-tailed doji near the 0.0234 level. These formations suggest indecision among buyers and growing bearish momentum. A key support level appears to have been established around 0.0228–0.02263, as the final candle showed some buying pressure after a sharp decline. A potential bounce from this area could lead to a retest of the 0.0234–0.0235 resistance zone.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed lower, indicating a bearish bias. On the daily chart, the 50-period and 200-period MA lines were also in a bearish alignment, reinforcing the downtrend. The price closed well below all short- and medium-term MAs, suggesting continued pressure to the downside unless a strong bullish reversal occurs.

MACD & RSI

The MACD line turned negative and diverged sharply from the price as SKLUSDT declined, indicating weakening bullish momentum. The signal line crossed below the MACD line, confirming bearish divergence. Meanwhile, RSI dropped to oversold territory (~25), suggesting that a short-term bounce may be on the horizon. However, the RSI has not shown a strong reversal signal yet, so the bounce could be limited in scope.

Bollinger Bands

Bollinger Bands expanded significantly during the selloff, with the price moving well below the lower band in the final hour. This expansion suggests a sharp increase in volatility. The price has not yet closed within the bands, which may indicate a continuation of the downward move or a possible bounce from the lower band as a key support level.

Volume & Turnover

Volume increased progressively during the decline, peaking in the final 15-minute candle, where over 1.8 million SKL changed hands. This confirms the bearish momentum. Turnover also rose sharply in line with price, with no sign of divergence. The volume profile supports the idea that the move lower is legitimate and likely driven by liquidation rather than a washout trade.

Fibonacci Retracements

Applying Fibonacci retracement levels to the 0.0234–0.02263 decline, the 38.2% level is at ~0.0230, and the 61.8% level is at ~0.0228. Price appears to have stalled near the 61.8% retracement level during the bounce, suggesting that this area may offer some resistance. A move above this level could indicate the start of a short-term rally, while a break below 0.02263 would signal a new leg down.

Backtest Hypothesis

Given the recent bearish momentum and the appearance of a potential bullish reversal near the 0.02263 level, a backtesting strategy could involve placing a long entry at this level with a stop loss below the recent low of 0.02255. A take profit could be set at the 0.0230 Fibonacci level. This setup leverages the RSI oversold condition and the bearish exhaustion seen in the Bollinger Bands and MACD. Traders could use a 20-period EMA as a dynamic support level to confirm the setup. A test of this strategy across a 3-month period using 15-minute data would provide insights into its robustness.