Market Overview for Anchored Coins AEUR/Tether (AEURUSDT)

• AEURUSDT traded between 1.1643 and 1.222, closing near 1.1781 after a volatile rally
• Strong bullish divergence in MACD and RSI overbought conditions suggest momentum shift
• High volatility seen mid-day with 1.222 as a key resistance level
• Volume surged during the 19:45–20:45 ET window, confirming breakout attempts
• Bollinger Bands show recent compression, hinting at potential breakouts

Market Open and Price Action

Anchored Coins AEUR/Tether (AEURUSDT) opened the 24-hour period at 1.1643 at 12:00 ET − 1 and reached a high of 1.222 by 20:45 ET. The pair then consolidated and closed at 1.1781 at 12:00 ET today. Total volume over the 24-hour window was 36,406.4, with notional turnover amounting to $43,263.18 (assuming 1 unit per trade). This suggests heightened market interest amid price swings.

Key Support and Resistance Levels

The 15-minute chart revealed a key resistance at 1.222 and a strong support zone around 1.1767. A notable bearish engulfing pattern emerged at 1.2148, signaling potential reversal. Additionally, a doji formed near 1.1853, indicating indecision. These patterns, in conjunction with Fibonacci retracement levels at 1.181 and 1.188, highlight critical inflection points for near-term trading decisions.

Momentum and Volatility

The MACD line showed a bullish divergence in the 15-minute timeframe, indicating momentum could outpace price action. RSI hit overbought levels above 70 for several periods, suggesting possible corrections. Bollinger Bands were wide from 20:00–21:00 ET, confirming high volatility, while a contraction emerged after 02:00 ET, hinting at a period of consolidation and potential breakout.

Volume and Turnover

Trading volume spiked dramatically during the 19:45–20:45 ET window with a total of 13,548.9 units traded, driven by a surge in larger-sized orders. This was the most significant turnover spike of the day, with a corresponding high in price. However, after 21:00 ET, volume decreased despite continued price fluctuations, suggesting weakening momentum. No clear price-volume divergence was observed.

Backtest Hypothesis

A potential backtesting strategy could utilize a MACD top-divergence signal for short entries on AEURUSDT, with a defined exit mechanism. Based on the recent price dynamics and MACD divergence, a reasonable approach would be to close short positions when the MACD line crosses above the signal line again (Option C). This method aligns with the observed overbought RSI and recent bearish reversal patterns. A full back-test from January 1, 2022, to today could offer insights into the strategy’s viability in this market.