Market Overview for Sophon/Tether (SOPHUSDT)

Summary
• Price formed a bearish engulfing pattern near 0.01345 after a failed rally.
• Volume surged in the 05:00–08:00 ET window, confirming bearish momentum.
• RSI signaled overbought levels above 0.01345, followed by a sharp sell-off.
• Price found short-term support at 0.01320–0.01325 during consolidation.
• Volatility expanded midday, with price moving 1.3% from 0.01346 to 0.01332.

Sophon/Tether (SOPHUSDT) opened at 0.01329 on 2026-01-05 12:00 ET, hit a high of 0.01351, and closed at 0.01342 as of 2026-01-06 12:00 ET. Total 24-hour volume reached 10.2 million units, with a notional turnover of approximately $138,727.

Structure & Formations

Price action showed a strong bearish reversal at 0.01345, where a large 5-minute bearish engulfing pattern confirmed waning bullish momentum. A key support level emerged at 0.01320–0.01325, with price bouncing back twice in late morning and evening hours. A potential 38.2% Fibonacci retracement level at 0.01338 may act as a pivot point in the coming 24 hours.

Moving Averages and Momentum

On the 5-minute chart, the 20-period and 50-period moving averages crossed bearishly, supporting the recent downtrend. RSI peaked above 70 in the morning, then dropped sharply below 50, indicating a shift in momentum. The MACD histogram turned negative after 05:00 ET, reinforcing bearish pressure.

Volatility and Divergences

Bollinger Bands expanded sharply during the 05:00–08:00 ET window, as volatility increased following a strong sell-off. Notional turnover spiked in line with price declines, suggesting aligned bearish sentiment. Volume surged to over 1.1 million units in the 16:00–17:00 ET window, but price failed to break below 0.01310, indicating some short-term support.

Forward Outlook and Risk

If SOPHUSDT breaks below 0.01320–0.01325 support, further consolidation toward 0.01310 could follow. A rebound above 0.01345 would signal renewed bullish interest. Investors should monitor for divergence between price and RSI, as well as volume confirmation for any near-term reversal attempts.

Price could remain range-bound or experience renewed volatility depending on broader market sentiment and news catalysts in the next 24 hours.