Bullish Engulfing Pattern Emerges as VulcanForged/Tether Tests 0.325

Summary
• Price found initial support near 0.317 and tested resistance at 0.325 during early hours.
• Momentum remained mixed, with RSI hovering near mid-range despite a late bullish push.
• Volatility expanded as volume spiked above 19k on key 0.324 breakouts.
• Bollinger Bands showed a contraction in early ET before widening with price action.
• A bullish engulfing pattern formed at 0.320–0.322 around 05:15 ET may signal a short-term reversal.

VulcanForged/Tether (PYRUSDT) opened at 0.318 on 2026-02-06 at 12:00 ET, reaching a high of 0.327 and a low of 0.315, and closed at 0.325 on 2026-02-07 at 12:00 ET. The 24-hour volume totaled 365,002.215 units, with a notional turnover of $118,164.85.

Structure & Formations

Price action displayed clear support at 0.317, with a cluster of bearish and bullish bars consolidating the level. Resistance emerged strongly at 0.325, where a bullish breakout attempt failed twice before finally holding around 04:15 ET. A notable bullish engulfing pattern appeared at 0.320–0.322, indicating a potential reversal from bearish pressure to cautious optimism.

Moving Averages

On the 5-minute chart, the 20- and 50-period SMAs crossed near 0.320, offering a potential dynamic support area. The price closed above both lines, suggesting a short-term bullish bias. On the daily timeframe, the 50- and 200-period SMAs remained untested, though the 100-period SMA could act as a resistance if the rally continues.

Momentum and Volatility

RSI remained in the mid-40s to mid-50s for most of the session, indicating a balanced momentum profile. The MACD showed a narrowing histogram before the 05:15 ET breakout, followed by a positive crossover that aligned with the price rally. Bollinger Bands tightened before 03:00 ET before expanding with the upward move, suggesting a shift in volatility.

Volume and Turnover

Volume surged above 19k during the 04:15–04:45 ET timeframe, coinciding with the 0.324–0.326 price consolidation. Turnover aligned with these volume spikes, confirming the strength of the bullish breakout. Divergences were not observed, suggesting price and volume action remained in agreement.

Key Levels and Retracements

Fibonacci retracement levels for the 0.315–0.327 swing identified 0.320 (38.2%) and 0.324 (61.8%) as critical levels. Price stalled at 0.325, a level slightly beyond the 61.8% retracement, which could act as a near-term ceiling or a consolidation point if buyers return.

The market appears to have established a short-term bullish trend, with a potential test of 0.325–0.327 expected in the next 24 hours. Investors should monitor volume for confirmation at key levels and remain cautious of potential pullbacks toward 0.320 or 0.317 should momentum fade.