Market Overview for A2ZUSDT

Summary
• Price drifted lower over the 24-hour period, closing at 0.00403 from 0.004189.
• RSI remained in oversold territory for most of the session, indicating potential for a short-term bounce.
• Volume increased significantly during the sharp decline from 0.004189 to 0.003964, signaling bearish conviction.

A2ZUSDT opened at 0.004189 at 12:00 ET–1 and drifted lower, reaching a 24-hour low of 0.003924 before closing at 0.00403 by 12:00 ET. The 24-hour volume totaled approximately 46.8 million contracts, with a notional turnover of around $191,000, based on average pricing.

A strong bearish bias became evident during the early hours of the session, as price dropped from 0.004189 to 0.003964 over several 15-minute intervals, with volume peaking during the breakdown from 0.004157 to 0.003964. Price found temporary support around 0.003924 before rallying modestly, suggesting a short-term rebound may be in play. A key support level appears to have formed around the 0.003924–0.003963 range, while resistance is now likely to be tested at 0.00403.

On the RSI, the indicator remained below 30 for much of the session, indicating oversold conditions. However, the price has yet to break back above key moving averages, suggesting that a retest of the 0.003924 level may still be in play. Bollinger Bands have widened during the decline, with price hovering near the lower band for much of the session. Volume during the bounce from 0.003924 to 0.00403 appears to be confirming the short-term reversal, but it remains below the levels seen during the sharp decline.

The 15-minute chart shows a strong bearish bias with price below both 20-period and 50-period moving averages. A potential bullish engulfing pattern may be forming near 0.00403, though it remains to be seen whether buyers can push price back above the 0.00405–0.00410 resistance zone. A Fibonacci 61.8% retracement of the recent move lies around 0.00405, which could act as a key level to watch for the next 24 hours.

Backtest Hypothesis
The backtesting strategy of shorting A2ZUSDT when the RSI is oversold and exiting the position when the RSI rises above 30 has shown a mixed performance. With 9 short signals over the period, only 3 were profitable, and 5 resulted in losses. This suggests that the RSI alone may not be sufficient as a signal for this asset, especially when volatility is high and volume fluctuates significantly. The negative returns and notable drawdowns indicate that additional filters—such as volume confirmation, trend alignment, or time-based exits—may be necessary to improve the strategy's performance.