Market Overview: Solana/Tether USDt (SOLUSDT)

• SOLUSDT surged to $224.9 before consolidating near $220.0, with volume peaking at $428,324.12.
• Momentum remained strong, as RSI climbed into overbought territory and MACD crossed above zero.
• Volatility expanded midday, as price broke through a key 61.8% Fibonacci retracement level.
• A large bullish engulfing pattern formed during the late ET hours, suggesting continued upside.

Solana/Tether USDt (SOLUSDT) opened at $212.19 at 12:00 ET − 1 and reached a high of $224.9 at 12:45 ET before closing at $220.0 at 12:00 ET today. Total volume for the 24-hour window was approximately 1,972,583.21, with notional turnover reaching $431,133,908.00, signaling heightened interest and price volatility.

Structure & Formations

Price action revealed several key structures throughout the session. A strong bullish engulfing pattern emerged between 07:15 and 07:30 ET, confirming the continuation of the uptrend. Key resistance levels at $221.58 and $224.29 were tested multiple times, with the latter failing to hold during the afternoon sell-off. A notable bearish reversal was not observed until late in the session, suggesting strong conviction among bullish participants. Support at $219.15 held temporarily, but was ultimately broken in the final hour.

Moving Averages

On the 15-minute chart, price remained above both the 20-period (219.12) and 50-period (217.45) moving averages, indicating a strong short-term bias. The 50-period MA, however, began to flatten in the afternoon, indicating potential exhaustion of the rally. On the daily chart, the 50-period (214.69) and 200-period (212.30) averages were well below current price levels, reinforcing a bullish trend.

MACD & RSI

Momentum, as measured by the MACD, remained positive throughout the session, with a peak histogram at 12:45 ET before diverging slightly during the late ET sell-off. RSI reached overbought territory (above 70) at multiple points, peaking at 81.3 during the morning surge. A bearish divergence began to form in the last hour, with RSI dipping below 70 while price continued to edge lower, suggesting a possible pullback in the near term.

Bollinger Bands

Volatility expanded significantly during the session, as evidenced by the widening of the Bollinger Bands from a mid-range of $215.42–$216.04 to $222.49–$223.96. Price traded near the upper band during the morning rally, before retreating toward the middle band in the afternoon. A contraction in volatility occurred briefly after 04:00 ET but failed to trigger a breakout.

Volume & Turnover

Trading volume spiked during key price moves, particularly between 07:15 and 07:45 ET, with notional turnover exceeding $430 million. The largest volume spike occurred at 12:45 ET with a $428,324.12 turnover, coinciding with the session’s high. A divergence between price and volume was observed in the final hour, with price dropping while volume remained relatively low, hinting at potential short-term consolidation.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent 15-minute rally, key resistance at the 61.8% level (~$221.6) was tested twice before price broke through and continued higher. A pullback to the 38.2% level at ~$219.85 was briefly observed in the late afternoon, providing a potential entry point for bears. On the daily chart, a 61.8% retracement of the recent bearish correction sits at $224.9, currently acting as a psychological resistance.

Backtest Hypothesis

The backtest strategy described involves entering long positions when a bullish engulfing pattern forms on the 15-minute chart, confirmed by a RSI divergence above 50. The exit signal is triggered when price closes below the 20-period moving average, with a stop-loss placed at the recent swing low. Given the pattern observed today, this strategy would have entered a long position at 07:15 ET, with a target near $224.9 and a stop near $219.15. This aligns with the observed price behavior and could serve as a model for short-term traders aiming to capitalize on continuation patterns during strong trending sessions.