Market Overview: Steem/Tether (STEEMUSDT) – October 31, 2025

• STEEMUSDT rallied 4.8% over 24 hours, driven by a late-night breakout above 0.0820.
• RSI surged into overbought territory (72), while volume spiked over 500k at 0.0835-0.0840.
• A bearish divergence formed after 03:00 ET as price peaked while volume declined.
• Bollinger Bands constricted pre-breakout before expanding, signaling a potential reversal.
• A 61.8% Fibonacci retracement at 0.0832 acted as key support before a bullish countermove.

24-Hour Snapshot

Steem/Tether (STEEMUSDT) opened at 0.0816 on October 30 at 12:00 ET, reached a high of 0.0849, and closed at 0.0842 by October 31 at 12:00 ET. The pair surged 4.8% amid a late-night bullish thrust. Total volume over the 24-hour window reached 12.4 million contracts, with notional turnover hitting approximately $1.07 million. Price action suggests strong short-term momentum amid expanding volatility.

Structure & Moving Averages

On the 15-minute chart, STEEMUSDT broke above a key psychological level at 0.0820, forming a bullish breakout pattern. The 20-period moving average crossed above the 50-period line, confirming a short-term bullish bias. On the daily chart, the 50-period MA remains below the 200-period line, indicating a longer-term neutral to bearish trend. Key support levels include 0.0820 and 0.0810, while resistance is at 0.0845 and 0.0860.

Momentum & Volatility Indicators

The MACD line crossed above the signal line just before the breakout, suggesting renewed bullish momentum. RSI surged to 72, indicating overbought conditions. Bollinger Bands tightened ahead of the breakout before expanding sharply after 00:00 ET, confirming a period of high volatility. Price remains near the upper band, suggesting continued upside potential but with a risk of consolidation or reversal if momentum fades.

Volume and Divergences

Volume surged to over 500k contracts during the 00:00–01:00 ET period, confirming the strength of the breakout. However, volume began to taper off after 03:00 ET, raising the possibility of a bearish divergence. Turnover spiked during the rally but fell off after 07:00 ET, suggesting reduced buying pressure. These divergences may point to a potential pullback in the near term.

Fibonacci Retracements and Key Levels

A 61.8% Fibonacci retracement level at 0.0832 provided strong support, with price rebounding off it before the final rally. The 38.2% retracement at 0.0840 acted as a temporary resistance but was quickly breached. Looking forward, 0.0845 and 0.0860 represent key Fibonacci levels that could act as dynamic resistance. If the rally stalls, 0.0832 and 0.0825 may serve as crucial support for the next 24 hours.

Backtest Hypothesis

The described backtesting strategy aims to evaluate a short-term reversal strategy based on RSI and bearish Engulfing patterns. The plan to reverse the P&L sign for short entries aligns with standard backtesting practices and will provide a clear performance metric. Using the close of the signal day as the entry point and the next day’s close as the exit aligns with a one-day holding period, which is consistent with the fast-moving nature of STEEMUSDT’s recent action. Given the volatility and overbought conditions observed, this strategy appears timely and relevant to the current setup.