Market Overview: Solana/Tether (SOLUSDT) Daily Price Action and Sentiment

• Solana/Tether (SOLUSDT) traded in a 24-hour range of $224.54–$235.89, closing higher at $230.14 after a strong midday rally.
• Price formed a bullish breakout pattern around $227–$228 followed by a consolidation phase toward the close.
• Volume surged to 173,782.95 at $231.40 before retreating, signaling potential short-term topping activity.
• RSI reached overbought levels near 75, while MACD showed divergence ahead of the pullback.
• Bollinger Bands expanded during the rally, indicating rising volatility and potential for a mean reversion.

Solana/Tether (SOLUSDT) opened at $225.01 on 2025-10-04 at 12:00 ET and closed at $230.14 on 2025-10-05 at the same hour. During the 24-hour period, the pair reached a high of $235.89 and a low of $224.54. Total volume across all 15-minute candles was 2,268,220.41, with a notional turnover of approximately $525.7 million.

The price structure showed key support levels at $227.16 and $224.54, with a major resistance forming at $231.40. A bullish breakout pattern emerged from $227–$228 around midday, followed by a retracement and consolidation. A large bullish engulfing pattern was visible near $228.21, suggesting a short-covering rally. A bearish doji appeared at $231.12–$231.12, signaling indecision and potential reversal.

MACD showed a bullish crossover early in the session, reaching a peak before a bearish divergence emerged as prices pulled back. RSI hit overbought territory at 75 near $235.89 and then declined toward neutral levels, suggesting a possible profit-taking sell-off. Bollinger Bands expanded during the rally and have since narrowed, indicating a potential for consolidation or a breakout.

Volume was significantly higher during the midday surge, with the largest 15-minute volume spike at $231.40. However, turnover during the subsequent pullback remained robust, suggesting continued participation. The price failed to break above the 20-period and 50-period moving averages on the 15-minute chart, remaining slightly above the 50-period line.

The 50-period moving average on the daily chart provided a key support level at $227.63, while the 200-period line acted as a reference for potential long-term direction. Fibonacci retracement levels from the recent swing high at $235.89 and low at $224.54 identified key zones at 38.2% ($230.62) and 61.8% ($227.03), with price currently hovering just below the 38.2% level.

Backtest Hypothesis
A backtesting strategy could target entries on bearish divergence between price and RSI, combined with a volume contraction. A potential setup exists around $231.00–$231.50, where RSI peaked while price continued to rally. A sell signal could be triggered on a close below the 20-period moving average, with a stop above the recent high at $231.40. A target of $227.03 aligns with the 61.8% Fibonacci retracement.