Market Overview: SKALE/Tether (SKLUSDT) - 24-Hour Technical Analysis

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• Price dipped sharply below 0.02300 and found support around 0.02218 before rebounding.
• Momentum shifted from bearish to mixed with RSI nearing oversold territory.
• Bollinger Bands narrowed before the drop, indicating pre-move consolidation.
• Volume spiked during the selloff but declined on the rebound, signaling potential exhaustion.
• A bullish engulfing pattern formed near 0.02216–0.02244, hinting at short-term reversal potential.

At 12:00 ET on 2025-09-26, SKALE/Tether (SKLUSDT) opened at 0.02324, reached a high of 0.02330, hit a low of 0.02208, and closed at 0.02234. Total volume for the 24-hour period amounted to 149,009,029.0 tokens, with a notional turnover of ~$3,349,000. The price action displayed a sharp bearish trend during the early part of the session, with a key support at 0.02218 providing a floor for the asset before a modest bounce.

The 15-minute chart reveals a descending pattern with a bearish bias, and a notable bullish engulfing pattern emerged between 23:45 and 00:00 ET (UTC+), indicating a possible short-term reversal. The RSI dipped below 30 during the selloff, suggesting oversold conditions, while MACD remained negative, reflecting bearish momentum. However, the RSI’s climb from 27 to 33 suggests a potential bottoming process.

Bollinger Bands showed contraction before the drop, hinting at a period of consolidation before the sharp move. The price now sits near the middle band on the rebound. Moving averages indicate bearish dominance, with SKLUSDT trading below all key EMAs (20, 50, and 200-period) for the 15-minute and daily charts. Notably, the 50-period EMA on the 15-minute chart acts as a minor resistance around 0.0225–0.0226.

Volume surged during the selloff but dropped on the rebound, suggesting that the short-term bounce may lack conviction. A volume divergence is visible at 0.02218–0.02234, indicating that sellers may be losing momentum. Fibonacci retracements show the 61.8% level of the previous bearish leg at 0.02218 coinciding with the low, adding structural significance to that price level.

The backtest strategy described focuses on detecting bullish engulfing patterns on the 15-minute chart, particularly when RSI is in oversold territory (<30). The hypothesis is that such patterns, when formed at key Fibonacci levels and following Bollinger Band contractions, can signal high-probability entry points for a short-term long position. In the current context, a long entry at 0.02234 with a stop loss below 0.02218 and a target at 0.0226–0.0227 aligns with the setup. This strategy would need to be validated over multiple cycles and adjusted for slippage and volatility.