Market Overview for Solana/Tether (SOLUSDT) – 2025-10-23

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• Solana/Tether (SOLUSDT) traded lower over 24 hours, with a bearish bias amid declining momentum and oversold RSI.
• Price dropped to 177.04 before rebounding, forming bearish engulfing patterns and a key support at ~179.00.
• Volatility expanded during the session, with volume peaking during the 20:00–21:15 ET window and diverging from price as turnover spiked.
• Bollinger Bands widened as price approached the lower band, indicating a potential near-term rebound.
• 61.8% Fibonacci level at ~178.00 and the 200-period MA may dictate near-term directional bias.

24-Hour Summary and Opening Context

Over the past 24 hours, Solana/Tether (SOLUSDT) opened at 184.04 at 12:00 ET − 1 and traded between 185.00 (high) and 177.04 (low), closing at 180.12 as of 12:00 ET on 2025-10-23. The total trading volume amounted to 1,016,404.90 SOL, while the notional turnover stood at approximately $185,000,000. The market exhibited a bearish tone, with price action suggesting a consolidation phase following a sharp correction.

Structure & Formations

The price action over the past 24 hours revealed multiple bearish signals. A key support level appears to have formed around 179.00, with price bouncing off this area multiple times. Notable candlestick patterns include a bearish engulfing pattern during the 21:45–22:00 ET session and a doji at 180.59 on 2025-10-22 20:00 ET, indicating indecision. The 61.8% Fibonacci retracement level (~178.00) now serves as a critical support level, while resistance is likely to emerge at 182.50–183.00.

Key Resistance and Support Levels

• Resistance 1: 182.00
• Resistance 2: 183.50
• Support 1: 179.00
• Support 2: 178.00

Moving Averages and Trend Direction

Short-term moving averages on the 15-minute chart suggest a bearish bias. The 20-period MA crossed below the 50-period MA, indicating a potential short-term downtrend. On the daily chart, the 200-period MA appears to be above current price levels, reinforcing the bearish sentiment. The 50-period MA may offer some short-term support if the price continues to test the 179.00–180.00 range.

Momentum and RSI Analysis

Relative Strength Index (RSI) levels dropped to the 28–30 range at 21:15–22:00 ET, entering oversold territory, and have since rebounded into the 50–55 range. This suggests a potential short-term reversal may be in play, although the bearish trend remains intact. The RSI’s divergence with price during the 20:00–21:15 ET window indicates weakening bearish momentum, which may set up for a countertrend rally.

Meanwhile, the MACD line crossed below the signal line during the 19:00–20:00 ET window, signaling bearish momentum. However, the MACD histogram is now flattening, hinting at a possible shift in trend direction.

Volatility and Turnover

Bollinger Bands widened during the 20:00–21:15 ET session as price approached the lower band, suggesting a potential mean reversion. The price subsequently bounced off this level, aligning with the Fibonacci retracement support. Volume spiked during the 20:00–21:15 ET window, with notional turnover reaching ~$23.5 million in that period. The divergence between price and volume—where price continued lower while volume waned—suggests waning bearish conviction.

Volume and Price Divergence

The largest volume spike occurred at 2025-10-22 20:00 ET with ~181,467.03 SOL traded, yet the price continued to drop, suggesting a divergence that may signal an eventual reversal.

Forward-Looking View and Risks

In the next 24 hours, Solana/Tether may test the 179.00–180.00 range for support or attempt to break above 182.00. A break below 178.00 could lead to a deeper correction, while a recovery above 182.00 may indicate a short-term bottom has been established. Traders should remain cautious as divergences in volume and RSI readings hint at possible exhaustion in the bearish trend. A bullish reversal remains possible if price can stabilize above the 20-period MA.

Backtest Hypothesis

The observed technical dynamics of Solana/Tether—particularly the bearish engulfing patterns, divergences in RSI and volume, and key Fibonacci levels—suggest the potential for a mean-reversion or RSI-based trading strategy. A backtest based on RSI levels could offer valuable insights. However, confirmation of the correct ticker symbol and parameters is required for accurate execution. Assuming the ticker is correct, and using the standard 14-period RSI with 30/70 thresholds, a strategy could be designed to trigger long positions upon RSI re-entry from oversold levels and short positions when RSI hits overbought territory. Including volume and price action filters (e.g., bullish engulfing patterns) may further refine signal quality.