Market Overview for 0G/USDC: Strong Overnight Rebound Amid Divergent Momentum

• 0G/USDC traded lower over the past 24 hours, closing at $2.70 vs. an open of $2.601.
• Price experienced a sharp rise during the overnight session, reaching a high of $2.805 before consolidating.
• High volume was observed during key breakouts, especially between 10:00–11:00 ET, with total turnover exceeding $750 million.
• RSI and MACD showed divergences during the afternoon dip, suggesting possible exhaustion of the bearish move.
• Volatility expanded during the overnight rally, with Bollinger Bands widening, indicating increased market interest.

At 12:00 ET on October 10, 2025, 0G/USDC opened at $2.601, traded to a high of $2.805, a low of $2.517, and closed at $2.70 by 12:00 ET. Total volume was 1,334,214.33, and notional turnover reached approximately $363.2 million over the 24-hour period. Price action reflects a strong overnight rally, followed by consolidation and a bearish pullback in the afternoon.

Structure & Formations

Price action over the last 24 hours revealed a strong bullish reversal overnight, forming a large white candle that engulfed several previous bearish bodies. This suggests a short-term shift in sentiment. Notably, the price tested the $2.62–$2.64 level multiple times, suggesting a developing resistance cluster. A bearish engulfing pattern formed during the afternoon, closing below the prior day’s high, which could indicate a short-term correction or consolidation. Key support levels were identified at $2.60 (broken during the afternoon), and $2.55–$2.57, where the price found some respite before resuming the upward trend.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are in bullish alignment, with the price trading above both. This suggests a strong short-term uptrend. For the daily chart, the 50/100/200-period moving averages are converging from different directions, indicating a potential trend transition. A crossover between the 50 and 100-day moving averages could signal a bullish continuation, provided the 200-day line is cleared.

MACD & RSI

The MACD turned positive during the overnight rally and entered bullish territory, confirming the strength of the move. However, during the afternoon pullback, the MACD showed bearish divergence relative to price action, suggesting a possible pause in the uptrend. RSI moved into overbought territory during the peak of the rally, then pulled back into neutral territory, indicating exhaustion and potential consolidation.

Bollinger Bands

Volatility expanded significantly during the overnight move, with the upper Bollinger Band stretching to $2.81 and the lower band contracting near $2.53. Price moved outside the upper band for several periods, indicating strong momentum. However, during the afternoon sell-off, the price dropped back into the band, signaling a return to mean behavior. This expansion and contraction suggest an increase in market attention and liquidity.

Volume & Turnover

Volume spiked during the overnight rally, especially between 10:00 and 11:15 ET, with large notional turnover volumes reaching $140 million. This high volume confirmed the bullish move. In contrast, the afternoon sell-off occurred on relatively lower volume, suggesting a lack of bearish conviction. Price and turnover appear aligned during the overnight session but diverged during the afternoon, raising questions about the sustainability of the bearish move.

Fibonacci Retracements

On the 15-minute chart, the $2.62–$2.64 level corresponds to the 38.2% and 50% Fibonacci retracement levels from the overnight high, reinforcing its significance as a potential resistance. The afternoon pullback to $2.517 reached the 61.8% retracement level from the high, suggesting a possible area of support. On the daily chart, the 61.8% retracement from the recent swing high is currently at $2.64, aligning with the overnight resistance zone and indicating a key area to watch for trend direction.

Backtest Hypothesis

The backtesting strategy under consideration relies on a combination of RSI divergence, volume confirmation, and Bollinger Band breakout patterns to identify potential reversal points. The strategy aims to capture short-term momentum shifts by entering positions during RSI overbought/oversold conditions that are confirmed by volume surges and price movement beyond key volatility levels. Given the recent RSI divergence and Bollinger Band expansion observed in the 0G/USDC pair, the conditions appear favorable for testing this strategy, especially in the context of the overnight breakout and afternoon pullback. The key will be ensuring sufficient volume confirms the reversal to avoid false signals.