Gains Network/Tether (GNSUSDT) Market Overview: 24-Hour Bearish Correction

• GNSUSDT experienced a 24-hour bearish reversal, closing at 1.725 after reaching a high of 1.808.
• RSI signaled overbought conditions early, followed by divergence as prices declined.
• Bollinger Bands showed volatility expansion in the morning before a midday contraction.
• A large-volume 15-minute candle at 23:15 ET (1.771 close) marked a key reversal bar.
• Total turnover surged to $47.4M amid increasing bearish sentiment.

GNSUSDT opened at 1.772 on October 8 at 12:00 ET and closed at 1.725 on October 9 at the same time, recording a high of 1.808 and a low of 1.704. Total trading volume for the 24-hour period reached 45,727.99 units, with notional turnover amounting to approximately $47.4M. A significant bearish shift became evident after a midday breakout failed to hold, triggering a cascading sell-off.

Key support levels emerged at 1.732, 1.713, and 1.704, while resistance held briefly at 1.75, 1.771, and 1.789. The 15-minute chart revealed a large bearish engulfing pattern at 23:15 ET (1.785 open, 1.771 close), signaling a shift in market sentiment. A doji formed at 02:30 ET (1.752 open, 1.746 close), highlighting indecision after the initial bearish move. The price action suggests that buyers are currently hesitant to push above the 1.75–1.76 range.

The 15-minute MACD histogram showed bearish divergence during the afternoon session, with price making lower highs despite a flattening MACD. The RSI reached overbought territory (70+) before falling into oversold territory (30–) within the same 4-hour window, suggesting exhaustion on both sides. Bollinger Bands saw a morning expansion as volatility increased, followed by a midday contraction that preceded a sharp bearish break. The price remained below the middle band for most of the session, indicating a dominant bearish trend.

Fibonacci retracement levels applied to the 1.704–1.808 swing identified key psychological levels at 1.764 (38.2%), 1.743 (50%), and 1.731 (61.8%). A 50-period moving average on the 15-minute chart crossed below the 20-period MA at 23:15 ET, confirming a short-term bearish bias. Daily 200-period MA remains above current price, indicating that a longer-term bearish trend is intact. A consolidation phase near the 1.725–1.730 range could trigger a test of 1.704 if bearish momentum continues.

Backtest Hypothesis
Given the observed bearish engulfing pattern at 23:15 ET, combined with a MACD bearish crossover and RSI overbought divergence, a potential backtesting strategy would involve a short entry at 1.775 with a stop-loss above the 1.785 level and a target at 1.704. This approach would align with the Fibonacci 61.8% retracement and key support levels identified in the 15-minute data. The volume profile also supports this, with heavy selling pressure noted between 23:15 and 03:00 ET. A similar setup could be tested on historical 15-minute data to validate the pattern's reliability across multiple bearish breakouts.