Market Overview for Sky/Tether (SKYUSDT): Range-Bound Action Amid Volatility

• Sky/Tether (SKYUSDT) traded in a range-bound 24-hour session, with price hovering between 0.07324 and 0.07839.
• Momentum oscillated around key levels, with RSI failing to hit overbought or oversold territory.
• Volatility increased during a midday bearish reversal, but was followed by a consolidation phase in the afternoon.
• Notional turnover spiked during a 15-minute candle at 15:15 ET, closing at a near 6.2% lower price.
• No strong bullish or bearish patterns emerged, with indecision dominating the formation of doji and spinning tops.

SKYUSDT opened at 0.07608 on 2025-09-18 at 12:00 ET and closed at 0.0736 on 2025-09-19 at 12:00 ET, with a high of 0.07839 and low of 0.07324 over the 24-hour period. Total volume traded was 57.1 million, with a notional turnover of approximately $4.35 million. The pair remained in a tight, sideways range, punctuated by brief spikes in volatility but no clear directional bias.

Structure & Formations

The price moved between key support and resistance levels during the day. A critical support was identified around 0.0745–0.0750, which held during the late-night and early morning. Resistance capped the price at 0.0765–0.0770 for several hours but eventually gave way following a sharp bearish reversal. Notable candlestick patterns included a morning doji near 0.07502 and a bearish engulfing pattern at 0.07784 during a strong volume spike. These patterns suggest indecision and potential short-term trend shifts.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages remained closely aligned, indicating no strong directional bias. On the daily timeframe, the 50-period and 100-period moving averages crossed slightly, hinting at a potential bearish bias, but the 200-period average remained above both, offering a buffer. The cross suggests a bearish divergence in the short-term momentum, but a longer-term bullish trend remains intact.

MACD & RSI

The MACD line oscillated around the signal line, with no clear histogram divergence indicating momentum is neutral. RSI readings remained between 35–65 for most of the session, showing moderate bullish and bearish pressure but no overbought or oversold conditions. A brief dip below 40 occurred during a strong bearish reversal but did not trigger a meaningful sell-off.

Bollinger Bands

Volatility showed a slight expansion in the afternoon, with price testing the lower band around 0.0745 during a consolidation phase. The band width increased modestly, but no clear breakout occurred. Price hovered closer to the middle band, suggesting no strong directional pressure. A contraction in the morning preceded the afternoon’s volatility, signaling a potential shift in sentiment.

Volume & Turnover

Volume increased significantly during a sharp decline from 0.07784 to 0.0736, with one 15-minute candle at 15:15 ET showing a volume of 6.29 million and a turnover of $470,000. This was the highest volume recorded during the session and was accompanied by a bearish close. The price and volume action appeared aligned, suggesting conviction in the downward move. No notable divergences were observed.

Fibonacci Retracements

Applying Fibonacci to the key 15-minute swing from 0.0736 to 0.07784, the 0.0758 level was reached during a retracement phase. The 0.0765 level acted as a temporary resistance before breaking lower. On the daily chart, the 0.0747 level aligns with the 61.8% retracement of the prior upward leg, suggesting a potential near-term support if the bearish bias continues.

Backtest Hypothesis

A backtesting strategy based on the 15-minute bearish engulfing pattern and volume divergence could be tested with this pair. Given the recent bearish engulfing candle at 0.07784 and a large volume spike, entering a short position at the close of that candle could be viable. The stop-loss could be placed just above the engulfing high at 0.07784, with a take-profit target at the next support level around 0.0745. This strategy would require confirmation of a follow-through bearish close and divergence in RSI or MACD to ensure conviction.