Market Overview for Algorand/Tether (ALGOUSDT)

Summary
• Price formed bearish engulfing and bear trap patterns, breaking key support at 0.128.
• Momentum reversed sharply with RSI declining from overbought to neutral and MACD showing bearish divergence.
• Volatility expanded through a Bollinger Band break, with turnover spiking during a key intraday selloff.

At 12:00 ET on 2025-12-12, Algorand/Tether (ALGOUSDT) opened at 0.1280, peaked at 0.1313, and closed at 0.1235 after a sharp decline. The 24-hour volume totaled 13,250,010 units with a notional turnover of ~$1,629,276 (calculated using average close price ~0.127).

Structure & Formations
Price action displayed multiple bearish signs, including a strong bearish engulfing pattern from 0.1294 to 0.1276 and a bear trap between 0.1297 and 0.1279. Key resistance levels at 0.1293–0.1305 failed, with price now testing immediate support at 0.1235 and long-term support at 0.1225.

Moving Averages
A clear breakdown occurred below the 50-period and 20-period moving averages on the 5-minute chart. Daily MA-50 and MA-100 are aligned near 0.1280–0.1285, suggesting further bearish pressure if 0.1225 is broken.

MACD & RSI
RSI fell from overbought territory (75) in the early hours to 48, signaling momentum exhaustion. MACD turned negative and crossed below the signal line, confirming a bearish shift. Divergence between price and momentum suggests continuation of the current downtrend.

Bollinger Bands
Volatility expanded sharply after 15:00 ET, breaking through the upper band. Price then collapsed below the lower band by 16:00 ET, signaling a possible consolidation phase near the 0.1225–0.1235 range.

Volume & Turnover
Volume surged during the breakdown at 15:30–16:00 ET, with a single 5-minute candle printing 2,487,375 units and closing at 0.1235. Notional turnover spiked during the sell-off, confirming bearish conviction.

Fibonacci Retracements
A 5-minute retracement from the 0.127–0.1305 swing shows critical levels at 0.1288 (38.2%), 0.1279 (50%), and 0.1271 (61.8%), all of which have now been broken. Daily retracements from the 0.1265–0.1303 range indicate support at 0.1274 and 0.1265—key levels for near-term buyers.

Looking ahead, a close below 0.1225 could trigger further bearish momentum toward 0.1212–0.1200, with potential for a 4–6% correction in the next 24 hours. Investors should closely monitor volume during the 0.1225–0.1235 range for signs of a potential reversal or continuation of the downtrend.