Market Overview for Four/USDC (FORMUSDC) on 2026-01-06

Summary
• Price tested key support at 0.3741 and rebounded with a bullish reversal pattern at 0.3734–0.3764.
• Volatility surged midday, with Bollinger Bands widening, signaling heightened uncertainty.
• RSI crossed into oversold territory, hinting at potential short-term buying pressure.
• High volume in the final 4 hours suggests increased positioning, but price remains below 0.3881 resistance.
• 20-period MA (0.3845) and 50-period MA (0.3860) indicate possible near-term resistance.

Market Overview

Four/USDC (FORMUSDC) opened at 0.3751 on 2026-01-05 at 12:00 ET, touched a high of 0.4004 and a low of 0.3734, and closed at 0.3767 on 2026-01-06 at 12:00 ET. The 24-hour volume totaled 251,241.2 and turnover reached 97,891.13.

Structure & Formations

A significant bullish reversal pattern emerged around 0.3734–0.3764, as the price formed a bearish engulfing pattern followed by a strong reversal candle. The 0.3741 level appears to act as firm support, with price bouncing off it twice. Resistance levels at 0.3881 and 0.3902 are critical for further upside.

Moving Averages

On the 5-minute chart, the 20-period MA sits at 0.3845 and the 50-period MA at 0.3860, currently above current levels, indicating potential near-term resistance. The 200-period daily MA at 0.3818 remains above the 24-hour close, suggesting a slightly bearish bias in the broader context.

Momentum & Oscillators

The RSI entered oversold territory below 30 after the morning dip, suggesting potential short-term buying interest. The MACD crossed below zero with a bearish signal line, but the divergence between price and momentum in the afternoon hints at possible countertrend activity.

Volatility & Bollinger Bands

Volatility expanded significantly after 04:45 ET, with the Bollinger Band width increasing from 0.0026 to 0.0056. Price remains within the band but has struggled to break above the upper band at 0.3908. A further contraction in volatility could precede a breakout attempt.

Volume and Turnover

Volume spiked dramatically in the last 4 hours of the 24-hour period, with over 240,000 units traded during this window. Notional turnover also increased, aligning with the price move from 0.3913 to 0.3767. However, volume during the rally above 0.3902 was relatively light, suggesting possible exhaustion on the upside.

Key Fibonacci Levels

Applying Fibonacci retracement to the 0.3734–0.4004 swing, the 0.3867 (61.8%) and 0.3933 (38.2%) levels appear to align with key moving averages and recent candle resistance. The 0.3741 level (78.6% retracement) is also a strong support area.

Looking ahead, a close above 0.3881 could trigger a test of 0.3902, but failure to hold above 0.3767 may invite further bearish pressure. Investors should remain cautious on long positions amid elevated volatility and potential short-term overextension in both price and momentum.