Market Overview for Synapse/USDC (SYNUSDC): Volatility Peaks Amid Deep Selloff

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• Price dropped sharply from $0.1374 to $0.1284, signaling bearish momentum.
• RSI approached oversold territory, suggesting potential short-term rebound.
• Volatility expanded in the overnight session with heavy volume and large range candles.
• Bollinger Bands widened during key selloffs, indicating heightened market uncertainty.
• No clear bullish reversal patterns emerged despite multiple attempts to find support.

Synapse/USDC (SYNUSDC) opened at $0.1372 at 12:00 ET–1 and traded between $0.1374 and $0.1284 during the 24-hour period, closing at $0.1295 at 12:00 ET. Total traded volume reached 1,056,131.2 and notional turnover hit $136,269.43. The pair experienced significant bearish pressure overnight, with a sharp drop in price and volume surges during key selloffs.

Structure & Formations

The candlestick structure suggests a bearish bias, with key resistance zones forming around $0.1360–0.1374 and strong support emerging at $0.1325 and $0.1294. A large bearish engulfing pattern formed between 03:30–04:15 ET on 2025-09-19, confirming a shift in sentiment. A doji appeared around $0.1325 in the early morning hours, indicating indecision and possible short-term reversal. The 15-minute chart showed a series of lower highs and lower lows during the overnight session, reinforcing the bearish setup.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages both trended downward during the 24-hour period, with price frequently below both. This confirms continued bearish momentum. On the daily chart, the 50/100/200-period moving averages also trended lower, with price closing near all three, reinforcing that the bearish trend is intact at multiple timeframes.

MACD & RSI

The MACD showed negative divergence with price in the early morning hours, as price made a new low but the MACD line did not. This suggests a potential near-term bounce. RSI reached oversold levels (below 30) during the late morning, hinting at a possible short-term rebound. However, without confirmation from higher timeframes, this remains speculative.

Bollinger Bands

Bollinger Bands expanded during the overnight sell-off, particularly between 02:45 and 04:45 ET, indicating increased volatility. Price spent much of the session below the lower band, especially in the early morning. The wide bands suggest that market participants are uncertain about the short-term direction and may be positioning for further consolidation or a counter-trend move.

Volume & Turnover

Volume spiked significantly during key selloffs, particularly at 03:30 and 03:45 ET, when large down-volume candles confirmed bearish pressure. Notional turnover also surged during these periods, supporting the idea of real selling pressure rather than wash trading. However, volume declined slightly in the latter part of the day, which could signal exhaustion or a pause in the bearish momentum.

Fibonacci Retracements

On the 15-minute chart, price found support at the 61.8% retracement level of the prior upward swing near $0.1325–0.1326. On the daily timeframe, the recent high at $0.1374 was followed by a move toward the 38.2% retracement level at around $0.1345, where price reversed downward. The next significant support appears to be at $0.1301–0.1303, with a breakdown likely to trigger a test of $0.1278 if bearish momentum continues.

Backtest Hypothesis

A potential backtesting strategy could involve using the MACD crossover and RSI divergence to signal short-term reversals in the context of a dominant bearish trend. For example, a long entry could be triggered when RSI hits oversold territory and MACD shows positive divergence, while a stop-loss is placed below a recent swing low. This would allow investors to capture short-term bounces without contradicting the overall bearish bias. Over the 24-hour period, this strategy might have captured a partial bounce off the $0.1301 level in the morning, with a stop-loss placed below $0.1294. Further testing would require confirmation of such patterns across multiple cycles and timeframes.