USTCUSDT Market Overview: TerraClassicUSD/Tether Daily Breakdown

• TerraClassicUSD/Tether (USTCUSDT) saw a 24-hour range of $0.00787–$0.00804, closing near the session low at $0.00743.
• Price formed bearish momentum with expanding downside volatility and divergent volume dynamics.
• Key Fibonacci levels from the $0.00804 high include 61.8% at $0.00754 and 78.6% at $0.00721.
• RSI hit oversold territory by the end of the session, suggesting potential for a short-term rebound.

TerraClassicUSD/Tether (USTCUSDT) opened the 24-hour window at $0.00787 and peaked at $0.00804 before closing at $0.00743 as of 12:00 ET. The pair traded within a bearish range, with a total volume of approximately 156,606,604 units and a notional turnover of roughly $1,230,870. The price action reveals a consistent bearish tilt with a sharp pullback from early resistance levels.

Over the 15-minute chart, the 20-period and 50-period moving averages are both in bearish alignment, with the 50-period line crossing below the 20-period, signaling a potential downtrend confirmation. MACD remains in negative territory, reflecting waning bullish momentum, while RSI has dipped to oversold levels near 25, hinting at a possible short-term bounce. However, the overbought levels seen earlier in the session suggest a continuation of the bearish trend is still probable.

Bollinger Bands are widening in the later half of the session, indicating increasing volatility. Price remains near the lower band, reinforcing the bearish bias. The key support levels appear to be forming around the $0.00745 and $0.00738 levels, both of which could serve as short-term floors. On the Fibonacci Retracement scale, the 61.8% level at $0.00754 and 78.6% at $0.00721 could offer critical resistance and support, respectively, as the market moves into the next 24 hours.

Volume and turnover data show a significant spike during the early hours of the morning, with the highest turnover occurring between 05:00 and 06:00 ET as the pair broke below $0.0075. However, as the price continued to fall, volume began to wane, indicating a possible exhaustion of selling pressure. The divergence between price and volume is a cautionary sign that a near-term reversal could be in play.

Backtest Hypothesis
The backtesting strategy described involves generating daily short-entry signals based on RSI values below 30, followed by holding for one day. For such a strategy to be viable on USTCUSDT, the asset must exhibit clear oversold conditions and subsequent price rebounds. While USTCUSDT has seen RSI entering oversold territory, it also displayed extended bearish momentum without immediate rebounds, challenging the effectiveness of such a strategy in a strongly trending environment. Further, the success of this strategy is contingent on the accuracy of the RSI data and the ability to act on signals in a timely and liquid market.