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• Price surged to $0.8515 before retracting to $0.8141, forming a bearish reversal pattern.
• Momentum shifted from bullish to bearish as RSI dropped below 50 and volume spiked during the decline.
• Volatility expanded during the early session, with Bollinger Bands widening, followed by a consolidation phase.
• Volume increased significantly during the downward move, confirming bearish pressure.
• Key support and resistance levels identified include $0.8200 and $0.8343, with potential for a test of $0.8150.
At 12:00 ET–1 on 2025-10-09, ADAUSDT opened at $0.8196, surged to a high of $0.8515, and fell to a low of $0.8141 before closing at $0.8222 at 12:00 ET. Total 24-hour trading volume reached 83.8 million ADA, with notional turnover of $69.7 million. The session featured sharp intraday moves, including a bearish reversal from $0.8515 to $0.8141.
The formation of a strong bearish reversal pattern and a significant volume surge during the decline indicate a possible shift in sentiment from bullish to bearish. Key support levels are forming around $0.8200 and $0.8150, while resistance remains near $0.8343. A test of the $0.8150 level could signal further downside potential, while a retest of $0.8343 may confirm short-term bullish momentum. The price may continue to consolidate in the near term, but volatility remains high due to the recent move out of a tight range.
Over the past 24 hours, the 20- and 50-period moving averages on the 15-minute chart have crossed lower, indicating bearish momentum. The MACD histogram turned negative, and the RSI dropped below 50, confirming a weakening in buying pressure. Bollinger Bands expanded during the early hours, suggesting heightened volatility, before narrowing again during the consolidation phase. This pattern suggests a possible continuation of bearish bias unless buyers step in to defend key support levels. The Fibonacci 61.8% retracement level is near $0.8175, a potential area of interest.
Backtest Hypothesis
A potential backtesting strategy could involve entering a short position when the price breaks below the 20-period moving average on the 15-minute chart, confirmed by a bearish RSI crossover below 50 and increased volume. A stop-loss could be placed at the most recent swing high, while a target could be set at the 61.8% Fibonacci retracement level. This approach would capitalize on the bearish momentum observed in the 24-hour data. Given the recent divergence between price and volume, further validation may be required, but this strategy aligns with the observed bearish pattern and technical indicators.
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