Prom/Tether (PROMUSDT) 24-Hour Market Overview

• Price action showed a late-day rebound following a sharp intraday dip below $10.00
• Volume surged during the bullish reversal, supporting the validity of the bounce
• RSI and MACD indicated a potential overbought condition near $10.13
• Volatility expanded, with a 15-minute high of $10.31 and low of $9.979
• No clear bearish reversal patterns emerged, but bullish momentum appears to be exhausting

Prom/Tether (PROMUSDT) opened at $10.026 at 12:00 ET on October 4 and closed at $9.989 at 12:00 ET on October 5, with a high of $10.311 and a low of $9.979. The 24-hour volume reached 187,888.59 and total turnover amounted to $1,924,404.87. The price action showed a volatile but ultimately mixed outcome, with strong upward momentum in the early hours and a late-day pullback.

Structure & Formations

The price action over the 24-hour period revealed key support at around $10.00–$10.02 and resistance at $10.13–$10.15. A strong bearish candle at $9.989 confirmed the 15-minute support near $9.98, followed by a bullish reversal from that level. A potential bearish engulfing pattern emerged around $10.20, but it was quickly invalidated by a rebound into the $10.12–$10.14 range. The doji at $10.122 on October 5 suggested indecision and potential volatility ahead.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed during the early morning, signaling a shift in momentum. The 50-period MA at $10.08 and the 20-period MA at $10.11 indicated a strong bullish bias before the late-day correction. On the daily timeframe, the 50/100/200-day MA alignment is not provided in the input, but the short-term trend remains above the 50-period MA, suggesting a potential continuation of the bullish bias unless a sustained close below it occurs.

MACD & RSI

The MACD showed a strong positive divergence in the early hours, reaching a peak before the late-day sell-off. RSI climbed to overbought territory above 65, peaking at 70 during the $10.20 high, then declined sharply during the afternoon. RSI’s pullback below 50 during the final 30 minutes suggests weakening momentum, and the MACD’s negative divergence during the sell-off may foreshadow further consolidation. The RSI currently sits at around 52, indicating a neutral to slightly bearish momentum.

Bollinger Bands

Volatility was elevated, with the upper Bollinger Band reaching $10.31 and the lower band touching $9.979. The price briefly touched the upper band in the early morning before falling back into the channel. The recent late-day pullback brought the price closer to the lower band, indicating a potential oversold condition. The Bollinger Band contraction is limited in the data provided, but the recent expansion suggests heightened volatility and a potential turning point.

Volume & Turnover

Volume spiked during the early morning surge and again in the late afternoon pullback, with the highest volume recorded at $10.152. The turnover spiked at $10.311 during the morning high, confirming the bullish bias. A notable divergence in volume occurred during the late-day sell-off, where the price dropped but volume did not spike significantly—suggesting a weaker bearish conviction. The final 15-minute candle had a volume of 184.98, closing at $9.989, slightly below the opening level.

Fibonacci Retracements

Applying Fibonacci to the recent swing high of $10.31 and the low of $9.979, the 38.2% retracement level sits at $10.13 and the 61.8% at $10.05. The price tested the 38.2% level twice—once at $10.13 and again during the morning pullback. A potential bounce off the 61.8% retracement may offer a short-term opportunity for bears, while a break above $10.13 could signal a stronger bullish continuation.

Backtest Hypothesis

The backtest strategy described involves a short-term mean-reversion approach, triggering long entries when price closes above the 15-minute 20-period MA and RSI dips below 45, while exits are triggered on a close below the 20-period MA. Given the current setup, with RSI at 52 and the 20-period MA at $10.11, a long entry might have been triggered in the early morning, but a bearish signal is now more plausible due to the late-day pullback and RSI’s recent weakening. This strategy would benefit from tighter stop-loss levels around key support at $10.00 and $9.98, while targets could be placed at $10.13 and $10.15.