Market Overview for Somnia/Tether (SOMIUSDT) – 2025-10-08

• • •

• Price traded between $0.81 and $0.8491, forming a bullish breakout late in the 24-hour period.
• RSI indicates overbought conditions near the session high, suggesting possible consolidation.
• Volume spiked during a late-day rally, confirming upward momentum.
• Bollinger Bands show a recent expansion, signaling increased volatility.
• A bullish engulfing pattern and golden cross suggest further upside potential.

At 12:00 ET − 1, Somnia/Tether (SOMIUSDT) opened at $0.8191, reached a high of $0.8491, and closed the 24-hour period at $0.8316 with a low of $0.81. Total volume over the period was 13,526,204.0 and notional turnover amounted to $10,934,131.1 (approximate, based on volume and average price). The pair displayed a strong bullish bias, with key momentum turning decisively upwards in the last six hours of the session.

The price structure on the 15-minute chart showed a strong bullish engulfing pattern forming after a period of consolidation, followed by a breakout to the upside. A golden cross between the 20 and 50-period moving averages confirmed the bullish shift, while the 200-period daily SMA remains below the current price, indicating a longer-term bullish trend. Key support levels were observed at $0.81 and $0.80, while resistance levels formed near $0.835 and $0.84.

MACD crossed above the zero line and showed a widening histogram, reinforcing the bullish momentum. RSI reached overbought territory near 75, suggesting that a pullback may be imminent, though it has not yet triggered a correction. Bollinger Bands showed a significant expansion, reflecting heightened volatility as the price moved away from the midline toward the upper band. Fibonacci retracement levels at 61.8% (~$0.835) and 78.6% (~$0.847) appear to be key psychological levels to watch in the near term.

Volume spiked sharply during the late-day rally, aligning with the price breakout. Notional turnover increased in tandem with rising prices, indicating strong buying pressure rather than a divergence. This suggests institutional or large-scale buying activity occurred during the final hours. However, investors should watch for a potential overbought reversal or consolidation near the $0.84 level, as this could signal a short-term pause in the rally.

Backtest Hypothesis

The proposed backtesting strategy involves a 15-minute timeframe entry on a bullish engulfing pattern confirmation, with a target of the next 61.8% Fibonacci extension and a stop loss at the recent swing low. This setup would align with the current technical environment and the observed price action. Given the strong momentum and volume confirmation, the strategy could be tested on historical data where similar patterns occurred with clear trend continuation. However, care must be taken to filter false signals by incorporating additional indicators such as RSI and moving average crossovers.