Market Overview for SushiSwap/Tether (SUSHIUSDT) – 2025-10-05

• SushiSwap/Tether (SUSHIUSDT) rose from $0.6832 to $0.7152 in 24 hours, closing near $0.7059.
• The pair showed a strong bullish reversal after falling below 0.7000 midday, closing near 0.7059.
• Key support levels at 0.6900–0.7000 were tested and bounced, confirming short-term strength.
• MACD turned positive midday and RSI showed overbought levels, suggesting short-term momentum.
• Volume surged during the rally, confirming the upward move and diverging from earlier weakness.

At 12:00 ET–1 on 2025-10-04, SushiSwap/Tether (SUSHIUSDT) opened at $0.6832 and closed at $0.7059 as of 12:00 ET on 2025-10-05. During the 24-hour period, the pair traded as high as $0.7152 and as low as $0.6800. Total trading volume reached approximately 1,421,340.0, and notional turnover was around $978,000. The pair displayed a sharp reversal following a test of support near 0.7000.

The price action showed a strong bearish decline early in the 24-hour period, testing the 0.7000 level and bouncing strongly. A bullish engulfing pattern formed around 19:30–20:00 ET, signaling a potential reversal. The 0.6900 level appears to be a firm support area, with several candles bouncing from it. On the 15-minute chart, the 20-period moving average crossed above the 50-period moving average (golden cross), suggesting short-term bullish momentum.

MACD turned positive in the afternoon and showed a growing histogram, reinforcing the bullish bias. The RSI climbed into overbought territory (above 65) around 05:00–07:00 ET, indicating short-term exhaustion, but was followed by a strong close. Bollinger Bands widened during the rally, reflecting increasing volatility, and the price remained above the 20-period moving average within the upper band, indicating strength.

Fibonacci retracement levels were key during the 24-hour period, with price finding support at the 0.7000–0.7050 cluster (~61.8% retracement of the earlier bearish move). Volume spiked during the reversal from 0.7000, confirming the strength of the bounce. Notional turnover followed the price closely, indicating aligned market sentiment.

Backtest Hypothesis

The described strategy involves identifying a bullish reversal pattern (e.g., bullish engulfing or hammer) after a strong bearish move, followed by a golden cross (20-period MA above 50-period MA) and an overbought RSI divergence. Using this setup, a backtest could be conducted by entering a long position at the close of the reversal candle, with a stop loss below the recent swing low and a take profit at the nearest Fibonacci resistance level.

Given the SUSHIUSDT data, the pattern identified on 19:30–20:00 ET fits this hypothesis. A trade entry at $0.6913 (close of the bullish engulfing candle) with a stop loss at $0.6870 and a target at $0.7050–0.7150 (61.8% and 100% retracements) could have yielded a profitable trade. This approach may work in similar reversal scenarios but should be tested over multiple cycles for robustness.