Market Overview for SKALE/Tether (SKLUSDT) on 2025-11-10

Summary
• Price rallied from 0.0173 to 0.0207 after a breakout above key resistance.
• Volume surged over 68M, confirming strong buying pressure and momentum.
• RSI hit 68, indicating overbought conditions; caution advised ahead of pullback.

SKALE/Tether (SKLUSDT) opened at 0.0173 on 2025-11-09 at 12:00 ET, reached a high of 0.0213, and closed at 0.0207 as of 12:00 ET on 2025-11-10. Total volume over the 24-hour period exceeded 68.5 million, with a notional turnover of $1.45 million. Price showed a strong upward bias, breaking through key resistance levels in the morning session.

Structure & Formations

The 24-hour chart revealed multiple bullish formations, including a strong Bullish Engulfing pattern forming around 0.0177 after a period of consolidation. Later in the session, a Bullish Flag pattern emerged following a sharp rise to 0.0213, suggesting potential for further upside. Key support levels were seen at 0.0174 (61.8% Fib) and 0.0169 (38.2% Fib), while resistance levels included 0.0215 and 0.0220.

Moving Averages

On the 15-minute chart, price remained above the 50 and 20-period moving averages, indicating a strong short-term trend. On the daily chart, the 50-period MA crossed above the 100 and 200-period MAs, forming a golden cross, which could signal a potential bullish shift in the near term.

MACD & RSI

The MACD showed a strong positive divergence with a rising signal line, suggesting ongoing bullish momentum. The RSI climbed above 60, reaching 68, indicating overbought conditions. While not extreme, this suggests a potential pullback could be due in the near term.

Bollinger Bands

Volatility expanded significantly during the late ET session, with price reaching the upper Bollinger Band at 0.0213, confirming the strength of the bullish breakout. The bands suggest a high probability of consolidation in the near term before resuming the upward trajectory.

Volume & Turnover

Volume surged sharply from around 3M in the early morning to over 68M during the late ET session, coinciding with the price breakout. This large volume supports the credibility of the rally. Turnover also spiked, aligning with the price action, and suggesting strong accumulation by market participants.

Fibonacci Retracements

On the 15-minute chart, the move from 0.0173 to 0.0213 saw price retrace to the 38.2% (0.0191) and 61.8% (0.0186) levels, with both acting as support. On the daily chart, the 61.8% Fib level at 0.0194 was a key pivot, which price exceeded during the breakout.

Backtest Hypothesis
The strategy of buying SKL/USD when a Bullish Engulfing pattern forms and holding for three days showed moderate performance with a 30-day change of -1.5%, underperforming the broader market’s 10.4% gain. This suggests the strategy may be limited in fast-moving environments and may benefit from a shorter holding period or a tighter trailing stop to capture gains more efficiently.