Market Overview: Starknet/Tether (STRKUSDT) – Volatility Peaks, Bearish Momentum Intensifies

• Starknet/Tether (STRKUSDT) fell 7.4% in 24 hours, closing near a key support level.
• Volume surged to $17.6M in late ET hours, signaling heightened bearish pressure.
• RSI near oversold levels, but bearish momentum and diverging volume suggest further downside.
• Price remains in a descending channel, with 0.1170-0.1180 likely to be next target.
• Macroeconomic risks remain, as crypto markets stay correlated with broader risk sentiment.

Starknet/Tether (STRKUSDT) opened at 0.1273 at 12:00 ET − 1 and closed at 0.1183 at 12:00 ET, reaching a high of 0.1305 and a low of 0.1160. Total volume for the 24-hour period reached 19.64 million tokens, with notional turnover amounting to approximately $2.32M. Price action reveals a bearish exhaustion phase, marked by strong selling in the late hours.

The structure of the candlestick pattern shows a descending channel forming on the 15-minute chart, with support at 0.1170-0.1180 and resistance at 0.1250-0.1260. A series of bearish engulfing patterns and long lower wicks suggest continued bearish momentum. Notably, after a minor rejection at 0.1190–0.1195 on the morning of October 22, the pair failed to hold above the 0.1190 level and continued downward, forming a key bearish signal for short-term participants.

Momentum indicators confirm the bearish bias. The RSI has dipped into oversold territory (≤30), but this does not guarantee a reversal, especially with volume continuing to support downward moves. The MACD has crossed into negative territory with declining momentum, reinforcing the downtrend. Bollinger Bands show price tightening in the final hours, suggesting a potential breakout or breakdown is imminent, but likely to the downside given the context.

Volume distribution tells a bearish story as well. The final 8–10 hours of the period saw a surge in volume, particularly between 00:00 and 04:00 ET, as prices moved from 0.1200 to 0.1180. Notional turnover increased sharply during these hours, with no corresponding rally to suggest accumulation. This divergence suggests further downside is likely before any meaningful retracement.

Fibonacci retracement levels applied to the 0.1160–0.1305 swing indicate key support at 0.1225 (38.2%) and 0.1192 (61.8%). A break below 0.1160 could target the 0.1140–0.1150 area. For intraday traders, the 0.1190–0.1195 zone appears as the most immediate barrier to further declines, and a close above it could signal a temporary pause in the selloff.

Backtest Hypothesis

The proposed backtesting strategy focuses on identifying Bearish-Engulfing patterns, entering short positions on confirmation and exiting when RSI falls below 30. This aligns with the recent STRKUSDT behavior, where bearish patterns were confirmed by declining RSI and surging volume. If applied to STRKUSDT, this strategy would have generated multiple signals during the October 22 selloff, particularly after the 00:00 ET print. However, as noted earlier, the ticker symbol STRKUSDT could not be validated for the backtesting database due to the “can’t find asset base info” error. To proceed with the backtest, confirmation or correction of the ticker symbol is required. Once resolved, the system will pull the Bearish-Engulfing dates, RSI values, and simulate the strategy from 2022-01-01 to today.