FUNUSDT Breaks Key Support — Bearish Signals Multiply

Summary
• FUNUSDT broke key support at $0.001380, closing below with bearish confirmation.
• Momentum weakened with RSI below 30 and declining volume.
• Bollinger Bands widened as volatility surged after a consolidation phase.
• A bearish engulfing pattern formed near $0.001385, signaling potential for further downside.
• Volume surged during the breakdown, supporting the validity of the move.

FUNToken/Tether (FUNUSDT) opened at $0.001391 on 2026-01-26 at 12:00 ET, hit a high of $0.001405, a low of $0.001332, and closed at $0.001333 on 2026-01-27 at 12:00 ET. The total volume for the 24-hour period was 201,674,337.0, with a notional turnover of $27,695.01.

Structure & Formations

The price of FUNUSDT has been in a steady decline for much of the 24-hour window, breaking below the key psychological support level of $0.001380 with a bearish engulfing pattern forming near $0.001385. This structure suggests a continuation of the downward trend. A potential next target lies around the $0.001350 area, with a stop potentially above $0.001395 if a reversal attempt occurs.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages have both sloped downward, with the 50-period line acting as dynamic resistance. While the 20-period line has crossed below the 50-period, suggesting a short-term bearish bias, the daily chart shows the price below the 50, 100, and 200-period averages, reinforcing a longer-term bearish trend.

MACD & RSI

The MACD has turned negative and appears to be forming a bearish crossover, with the histogram shrinking and aligning with the bearish price action. RSI has dropped below 30, signaling oversold conditions. However, the divergence between the RSI bottom and price action is not strong enough to indicate a reversal, suggesting continuation of the downward trend is more likely.

Bollinger Bands

Bollinger Bands have widened significantly over the past 12 hours, indicating increased volatility. Price has moved below the lower band on multiple occasions, reinforcing the bearish bias. The recent widening after a period of contraction is consistent with a breakout in the downward direction.

Volume & Turnover

Volume has spiked during the breakdown below $0.001380, validating the move lower. The highest notional turnover occurred during the sharp decline from $0.001390 to $0.001340. The correlation between volume and price decline is strong, with no significant divergence observed.

Fibonacci Retracements

On the 5-minute chart, price is approaching the 61.8% retracement level of the recent bullish swing from $0.001332 to $0.001405. This level at approximately $0.001360 could act as a potential short-term support or resistance. On the daily chart, the 61.8% retracement from the recent bearish move could offer resistance at around $0.001385 if a bounce occurs.

Forward-Looking Outlook

FUNUSDT appears to be in a bearish phase, with key support now broken and momentum indicators confirming weakness. Traders may monitor the $0.001350 level for further direction, though volatility remains high and rapid moves are possible. A reversal above $0.001385 could reintroduce caution, but for now, the bias is to the downside. Investors should be mindful of the potential for a sharp reaction if short-term liquidity is exhausted.