Altlayer/Tether Market Overview: Strong Rally and Confirmation of Breakout

• Altlayer/Tether surged 21.2% over 24 hours, closing at 0.02018 with a strong bullish momentum.
• Volume spiked 7.7x from 11:15 AM to 2:30 PM ET, supporting the breakout above 0.02001.
• RSI entered overbought territory (70+) near the session high, suggesting potential near-term pullback.
• Bollinger Bands expanded significantly as volatility surged, price hovering near upper band.
• A key resistance at 0.02016 was tested and surpassed, with 0.02001–0.02016 now acting as a consolidation range.

The Altlayer/Tether pair (ALTUSDT) experienced a strong 24-hour rally, opening at 0.01926 on October 25 at 12:00 ET and rising steadily through the session to close at 0.02018 on October 26 at 12:00 ET. The high reached 0.0202, while the low remained at 0.01918. Total trading volume for the 24-hour period was 192,235,538 ALT tokens, with a notional turnover of approximately $3,878,000. The sustained price action above key psychological levels indicates growing buyer confidence.

Structure and momentum favored bulls, with the price forming a clear breakout above 0.02001 after a consolidation phase. Multiple bullish candlestick patterns—such as a hammer near 0.01943 and a morning star—confirmed the reversal. Key support levels appear to be at 0.0196–0.0197 and 0.0194–0.0195, while the next resistance lies at 0.02025–0.0203. A failure to hold above 0.02006 may invite short-term profit-taking.

The 20-period and 50-period moving averages on the 15-minute chart were both bullish, with price above both lines for most of the session. MACD showed a positive divergence, with the line and histogram expanding as the price surged. RSI climbed to overbought levels, peaking at 72, which may signal a near-term correction. Bollinger Bands widened significantly after the breakout, with price staying near the upper band for much of the session, indicating heightened volatility and strong momentum.

Fibonacci retracement levels applied to the recent swing from 0.01918 to 0.0202 showed 0.0197 (38.2%) and 0.0199 (61.8%) as key psychological levels. Price held above 0.0199, confirming the validity of the breakout. Volume surged to over 4 million ALT tokens at key resistance levels, reinforcing the move higher. However, a drop below 0.02006 may trigger a retest of the 0.0199–0.0197 range.

Backtest Hypothesis

The backtest will evaluate a strategy based on the Bullish Engulfing pattern, a reversal candlestick formation that often precedes a leg higher in price. Given that the automated fetch for Bullish Engulfing events for ALTUSDT failed due to ticker recognition issues, manual intervention is required. To proceed, we need either the correct ticker symbol or a manually compiled list of event dates since 2022. Once this data is secured, we will generate entry signals and execute a backtest using the specified exit rule of closing at or above 0.02016 or at the end of the series. The results will offer insights into the pattern’s efficacy on this asset.