Market Overview for Test/Tether (TSTUSDT)

Summary
• Price formed a bearish engulfing pattern near 0.01845 before consolidating lower.
• Volume surged at the 5-hour mark, confirming bearish momentum with a 40% increase in turnover.
• RSI entered oversold territory at 0.01778, suggesting potential for a short-term rebound.
• Bollinger Bands expanded significantly after 07:00 ET, signaling heightened volatility.
• 20-period MA crossed below 50-period MA in the morning, confirming a short-term downtrend.

Test/Tether (TSTUSDT) opened at 0.01775 on 2025-12-29 at 12:00 ET-1 and closed at 0.01780 at 12:00 ET. The pair reached a high of 0.01867 and a low of 0.01763 over the 24-hour window. Total volume traded was approximately 13,180,874.8 units, with a notional turnover of 236,812.45.

Structure & Formations

A bearish engulfing pattern developed at 0.01845 on the 5-minute chart as prices closed below the prior candle’s open. This formation coincided with a strong volume increase, signaling potential bearish exhaustion. A key support level appears to have formed around 0.01778–0.01792, where prices have bounced multiple times over the past 6 hours.

Technical Indicators

RSI dropped below 30 in the late morning, entering oversold territory and suggesting a potential bounce. MACD turned negative and crossed below the signal line, reinforcing the bearish bias.

The 20-period MA crossed below the 50-period MA in the early hours, forming a death cross that confirms a near-term downtrend.

Volatility & Volume Analysis

Bollinger Bands widened sharply after 07:00 ET, reflecting a period of high volatility. Price traded near the upper band until 08:00 ET before drifting downward. Volume surged by over 40% between 06:30 and 08:00 ET, aligning with the price decline. However, notional turnover started to flatten in the last 3 hours, indicating potential exhaustion.

Fibonacci Retracement Levels

Recent 5-minute swings show 0.01792 at the 38.2% retracement level and 0.01765 at the 61.8% level. The price may face resistance at 0.01792 if it attempts to rebound. A break below 0.01765 could accelerate the downtrend.

The market appears to have found a near-term floor around 0.01778, but the bearish momentum remains intact. A test of 0.0183–0.0184 could occur if a short-covering rally emerges. Investors should watch for volume confirmation on any upward move, as divergence could signal a false breakout. Volatility may remain high over the next 24 hours, and a further test of key support could trigger renewed selling.