Algorand/Tether Market Overview: Volatility and Momentum Signals

Summary
• Price action saw a peak at $0.1867 and a trough at $0.1762 within 24 hours.
• Volatility increased mid-day with a volume spike of 2.36 million contracts.
• RSI indicates moderate momentum with no clear overbought or oversold levels.

Algorand/Tether (ALGOUSDT) opened at $0.1770 on 2025-11-07 at 12:00 ET and reached a high of $0.1867 before settling at $0.1804 at 12:00 ET the following day. The pair traded between $0.1762 and $0.1867 over the 24-hour window. Total volume amounted to 57.4 million contracts, with a notional turnover of approximately $10.38 million (calculated from price × volume).

Structure & Formations

Price action revealed key support levels around $0.1780 and resistance at $0.1840–$0.1860. A notable bearish engulfing pattern formed around $0.1853 on 2025-11-07 at 19:00 ET, indicating a possible reversal in upward momentum. A doji at $0.1851 later that evening signaled indecision among buyers and sellers.

Moving Averages

On the 15-minute chart, the 20-period MA (at ~$0.1810) crossed above the 50-period MA in the early morning, forming a potential bullish signal. However, the 50-period MA began to diverge from price as the market weakened toward the close. On the daily chart, the 50-period MA is above the 100- and 200-period MAs, suggesting a longer-term bullish trend.

MACD & RSI

The MACD histogram showed a mild bullish divergence in the morning before turning negative in the afternoon, reflecting a shift in sentiment. RSI values remained in the 50–65 range throughout the day, indicating moderate momentum without reaching overbought or oversold levels.

Bollinger Bands

Price activity expanded Bollinger Bands mid-day, reflecting increased volatility following the 19:00 ET spike. At the close, price sat near the middle band, suggesting consolidation.

Volume & Turnover

The highest volume occurred at 19:00 ET with 1.76 million contracts, while the corresponding turnover reached ~$3.2 million. A divergence between volume and price emerged in the late evening, with declining volume despite continued price movement, signaling potential exhaustion in the trend.

Fibonacci Retracements

A 61.8% retracement level was observed at $0.1806 following a recent upswing from $0.1762 to $0.1867. Price bounced off this level in the late evening, suggesting a temporary support area.

Backtest Hypothesis

Given the recent price behavior, a 14-day holding period following a Golden-Cross signal may align with the observed 20/50 MA dynamics. ALGOUSDT exhibited a bullish crossover in the early morning, which could be used as an entry trigger. While a 14-day holding period may not guarantee profits, it aligns with short-term momentum patterns observed in the RSI and MACD. For a backtest, this could be simulated using a daily or 1-hour timeframe for greater precision.