Market Overview for Sophon/Tether (SOPHUSDT) on 2025-10-05

• SOPHUSDT traded in a tight range early before a sharp reversal upward in early New York trading.
• Price pushed above key resistance at $0.02900, with a bullish engulfing pattern observed at 03:15 ET.
• Volatility expanded significantly post-02:45 ET, driven by a 24-hour high of $0.02973 on strong volume.
• RSI overbought above 70 at peak, suggesting possible near-term pullback, while MACD showed bullish crossover.
• Bollinger Bands flared wide, indicating high volatility, with price consolidating near the upper band by 12:00 ET.

Sophon/Tether (SOPHUSDT) opened at $0.02878 on 2025-10-04 12:00 ET, reached a 24-hour high of $0.02973, and closed at $0.02929 by 12:00 ET on 2025-10-05. Total volume traded amounted to 11.96 million tokens, with a notional turnover of $346,639. The pair displayed a sharp upward move amid increased volatility and volume.

Structure & Formations

Price action revealed a key support at $0.02880 and a strong resistance at $0.02900, which was decisively broken on 03:15 ET with a bullish engulfing pattern. The subsequent rally to $0.02973 showed a strong bullish sentiment, while a bearish consolidation phase followed after a failed attempt to push above the $0.02975 level. A doji formed at $0.0296 at 09:45 ET, signaling potential indecision.

Moving Averages

On the 15-minute chart, price closed above the 20- and 50-period moving averages, suggesting a continuation of the bullish trend. The daily chart showed the price trading above the 50-period MA but near the 100- and 200-period MAs, indicating a potential consolidation phase or a reversal if support at $0.02900 holds.

MACD & RSI

The MACD line crossed above the signal line at 02:30 ET, confirming a bullish momentum shift. RSI surged to over 70 by 05:15 ET, suggesting overbought conditions, and pulled back to mid-60s by 12:00 ET, showing a temporary loss of upward momentum but still maintaining a positive bias.

Bollinger Bands

Volatility expanded significantly post 02:45 ET, with the Bollinger Bands widening. Price action peaked near the upper band at $0.02973, followed by a pullback toward the mean by 12:00 ET, indicating the potential for a short-term correction or continuation.

Volume & Turnover

Volume spiked to 2.2 million tokens at 05:00 ET as price surged to $0.0296, confirming the move. The highest notional turnover of $96,959 occurred during the same period. A divergence between volume and price was noted during the consolidation phase at $0.0294–$0.0296, which could indicate weakening momentum.

Fibonacci Retracements

Applying Fibonacci levels to the swing high at $0.02973 and low at $0.02880, price found support near the 61.8% level at $0.02937 before pushing higher. A potential target for a continuation move could be the 78.6% retracement at $0.02965, with a key resistance still in play at $0.02975.

Backtest Hypothesis

A potential strategy for backtesting SOPHUSDT involves entering long positions on a bullish engulfing candle at key support levels (e.g., $0.02900), with a stop-loss placed below the prior swing low and a take-profit target at the 61.8% Fibonacci level. This approach aligns with the observed price behavior and could be evaluated for intraday setups. Given the high volatility and volume, this strategy may work best during strong bullish phases with confirmed momentum.