0G/USDC Market Overview: 24-Hour Price Action and Technical Setup

• Price declined from 1.136 to 1.053 over 24 hours with significant bearish momentum in the overnight session.
• RSI dropped to oversold territory below 30, suggesting possible near-term buying interest.
• Volume spiked during the overnight selloff but has since tapered, indicating reduced conviction in the downside.
• Bollinger Bands show a recent contraction, hinting at a potential breakout or breakdown.
• 20-period MA turned bearish on 15-min chart, with price trading below it throughout the session.

The 0G/USDC pair opened at 1.136 on 2025-11-05 at 12:00 ET and fell to a 24-hour low of 1.053, closing at 1.053 by 12:00 ET on 2025-11-06. Total volume over the 24-hour period was 557,725.34, with a notional turnover of approximately $597,230. Price action showed a sharp breakdown during the overnight session, with a bearish engulfing pattern forming after a prior rally.

The 20-period and 50-period moving averages on the 15-min chart have turned negative, both crossing below price action to signal bearish momentum. The RSI indicator has fallen below 30, indicating oversold conditions and the potential for a short-term bounce. However, the recent breakdown below key support levels suggests that a retest may not lead to a sustained recovery unless strong buying pressure emerges. Bollinger Bands have recently contracted, implying a period of consolidation before a possible breakout or breakdown.

On the MACD, the histogram has turned negative and remains below the signal line, reinforcing bearish momentum. The price remains within the Bollinger Bands but has not yet found a clear directional bias. A key support level is forming around 1.03–1.04, with a shallow rebound observed in that range. Fibonacci retracements from the recent high of 1.145 suggest 61.8% at 1.074 and 78.6% at 1.045 are critical psychological and technical levels.

Looking ahead, investors should closely watch the 1.03–1.04 support zone and the 50-period MA. A break below 1.03 could trigger a deeper correction toward 1.00–1.02, while a retest of 1.05–1.06 with strong volume may indicate a short-term bounce. However, caution is warranted as volatility remains elevated and divergence between volume and price suggests uncertainty in market sentiment.

The 1.03–1.04 support level is a critical area to monitor for a potential bounce or breakdown. A bearish engulfing pattern formed after a brief rally, and volume spiked during the selloff, indicating significant conviction in the move lower. If buyers fail to re-enter the 1.04–1.05 range, the next key target is the 1.00–1.02 zone. Traders should also watch the 20-period MA for a potential bearish confirmation or short-term reversal signal.

The proposed backtesting strategy seeks to exploit bearish setups involving RSI overbought readings and a bearish engulfing candlestick pattern. Overbought conditions typically indicate exhaustion in bullish momentum and may precede a reversal or consolidation phase. The bearish engulfing pattern, when confirmed by volume and price action, strengthens the short-side signal. By testing this strategy from 2022-01-01 to present on the 0GUSDC pair, the results could validate whether these signals effectively capture short-term bearish moves. To proceed, the exact ticker symbol for 0G/USDC and the RSI overbought threshold must be confirmed to align with the data vendor’s format and strategy assumptions.