0G/USDC Market Overview: Deep Correction, Oversold RSI, and Volume Confirmation

• Price dropped 16% over 24 hours, closing at $2.955 after a volatile sell-off.
• Key support tested at $2.90–2.95, with bearish momentum remaining strong.
• RSI oversold conditions observed, suggesting potential for short-term reversal.
• Volume spiked during early AM ET selloff, confirming bearish sentiment.
• Bollinger Bands show increased volatility, with price hovering near lower band.

The 0G/USDC pair opened at $3.049 on 2025-10-06 at 12:00 ET and closed at $2.955 by the same time on 2025-10-07. During the 24-hour period, it reached a high of $3.073 and a low of $2.879. Total trading volume amounted to 282,208.64, while notional turnover was approximately $849,724. The price action reflected strong bearish control, especially between 12:00 AM and 6:00 AM ET.

The price structure shows a deep pullback from a recent high of $3.073, forming a bearish channel and testing the 2.90–2.95 support zone. A key bearish engulfing pattern emerged during the 12:00–12:15 AM ET session, confirming the breakdown. The 15-minute chart reveals a breakdown below the 20 and 50-period moving averages, indicating short-term bearish bias. Daily moving averages (50, 100, 200) appear to be trending lower, reinforcing the downtrend.

Momentum indicators highlight the severity of the selloff. The RSI is in oversold territory around 25, suggesting potential for a near-term bounce or consolidation. However, the MACD remains bearish with both lines and the histogram below zero. Bollinger Bands show a significant expansion in volatility, and the price has remained close to or below the lower band for most of the period. This suggests that while the move down has been sharp, it may not yet be exhausted.

Fibonacci retracement levels applied to the recent 15-minute move from $3.073 to $2.879 suggest key levels at 38.2% ($2.962) and 61.8% ($2.919). These levels have been partially tested, with $2.919 currently acting as a critical support. Volume analysis shows a sharp spike during the early AM ET sell-off, particularly between 01:30 AM and 03:00 AM ET, which confirms the bearish move. However, a divergence between price and volume in the past hour suggests some exhaustion in the downward move.

Backtest Hypothesis

Given the oversold RSI and the recent sharp correction, a potential trade setup could involve a short-term long entry at the 38.2% Fibonacci level ($2.962) with a stop loss below $2.919. This entry aims to capture a potential bounce if buying pressure resumes. A target for this trade could be set near the 50-period moving average, currently at around $2.985. This strategy leverages both Fibonacci retracement levels and RSI divergence, assuming a reversal is imminent. However, traders should closely monitor the 20-period moving average for signs of bearish continuation.