Fusionist/Tether Market Overview

• Price surged 7.1% over 24 hours, closing near session high of 0.488 after forming bullish engulfing patterns post-overnight lows.
• Volatility expanded as price broke above 0.485 resistance, with RSI reaching 62 and MACD showing positive divergence.
• Notable divergence between volume and price: volume dropped during afternoon pullback but surged during breakout above 0.485.
• Bollinger Bands widened overnight, confirming breakout after a consolidation period between 0.475 and 0.483.
• 61.8% Fibonacci retracement at 0.484 served as key dynamic support-turned-resistance, later confirmed by price action and volume.

At 12:00 ET–1 on 2025-10-02, ACEUSDT opened at 0.467 and closed at 0.488 by 12:00 ET on 2025-10-03. The pair reached a high of 0.493 and a low of 0.467 over the 24-hour period. Total notional turnover amounted to $1.028 million, based on a total volume of 2,139,724.40 tokens traded.

The 15-minute chart showed a strong bullish reversal overnight, with a large bullish engulfing pattern forming after price tested and rejected support at 0.475. A key breakout above the 0.485 level confirmed a shift in sentiment, and the price has remained above it. A doji formed briefly during the afternoon pullback at 0.482, indicating indecision before bullish momentum retook control. The 20-period and 50-period moving averages were both bullish, with price trading above both and forming a potential golden cross setup by late morning.

Bollinger Bands reflected increased volatility, with price breaking out above the upper band after a prolonged consolidation phase between 0.475 and 0.483. This breakout was supported by increased volume and a sharp rise in price. The lower band remained near 0.473, which acted as a floor during the pullback but failed to hold for long. RSI climbed from oversold levels into overbought territory, reaching 62, while MACD showed a bullish crossover, suggesting continued positive momentum may persist. However, caution is warranted as RSI nearing overbought levels may trigger profit-taking or short-term corrections.

Fibonacci retracements identified the 61.8% level at 0.484 as a critical pivot point, which was confirmed by both price action and volume during the morning session. The 38.2% retracement at 0.479 provided temporary support and resistance during intraday fluctuations. The 0.484 level is now a potential dynamic support, which could become a key area for retracement if the price pulls back after the current rally.

Backtest Hypothesis

A potential backtesting strategy would involve entering long positions on the confirmation of a bullish engulfing pattern forming above the 0.485 level, with a stop-loss placed below the 0.481 Fib support and a take-profit target at the 0.491–0.493 high. This approach would leverage both candlestick pattern recognition and key Fibonacci levels identified in the 15-minute and daily charts. A trailing stop could be activated after the RSI crosses above 50 and the MACD remains in positive territory. This setup aims to capture the continuation of bullish momentum following a well-defined breakout and divergence confirmation, while managing downside risk with key support levels as triggers.