Market Overview for DAR Open Network/Tether (DUSDT)

Summary
• DUSDT opened at $0.02099, reached $0.03074, and closed at $0.02105 by 12:00 ET on 2025-11-08.
• A strong bearish engulfing pattern emerged mid-session, followed by a consolidation phase.
• Volatility peaked at $0.03074, with volume surging to 87.38 million contracts.
• Price retreated below key support at $0.02200 after a test of $0.02289.
• Turnover exceeded $500 million, with diverging price and volume patterns observed in the final 6 hours.

DAR Open Network/Tether (DUSDT) opened at $0.02099 on 2025-11-07 and closed at $0.02105 the following day at 12:00 ET. The price reached a high of $0.03074 during the session and a low of $0.02085. Total volume for the 24-hour period amounted to 431.76 million contracts, with a total notional turnover of approximately $500 million, reflecting heightened market activity and investor sentiment shifts.

The candlestick structure revealed a significant bearish engulfing pattern around 17:15 ET, with a sharp move from $0.02105 to $0.02789 followed by a rapid reversal to $0.0228. This pattern could indicate a shift in short-term sentiment. Price consolidation followed between $0.02200 and $0.02289, forming a potential short-term range. A critical support level appears to have emerged at $0.02200, which was tested and breached twice in the latter half of the session.

Moving averages on the 15-minute chart suggest that price closed below the 20-period SMA at $0.02220, and below the 50-period SMA at $0.02245. On the daily chart, the 50-period SMA at $0.02180 appears to act as a key resistance. The 200-period SMA, at $0.02160, remains a crucial long-term support. This suggests a bearish bias in both short- and medium-term momentum.

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The RSI closed at 45, indicating neutral momentum with no clear overbought or oversold conditions. MACD showed a bearish crossover in the afternoon, reinforcing the likelihood of further downside. Bollinger Bands were wide, reflecting high volatility, with price frequently touching the lower band after 18:00 ET. This could suggest a continuation of a bearish trend or at least a period of consolidation.

The volume profile showed a clear spike at 17:15 ET with a massive 87.38 million contracts traded, confirming the bearish engulfing pattern. However, in the final 6 hours, volume declined significantly while price continued lower, signaling potential divergence. This may suggest a weakening of the bearish momentum and a possible reversal if price finds support.

Applying Fibonacci retracements to the $0.02085–$0.03074 swing, the 61.8% level sits at $0.02450, which was not tested during the session. The 38.2% retracement at $0.02600 also remained unchallenged. On the daily chart, the 50% retracement of the broader downtrend is at $0.02160, which aligns with the 200-period SMA and could act as a key psychological level.

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Backtest Hypothesis

The backtesting strategy hinges on detecting and acting upon bearish engulfing patterns in DUSDT's price action. Each time such a pattern is identified, a short position is initiated at the open of the next bar, with a target to cover at the first close below or at $0.02144. This threshold appears to represent a significant short-term support level in recent price action, as the price tested and then breached this level during the session. The strategy assumes no additional risk management mechanisms, relying solely on the price reaching a predefined level to exit. Given the current price structure and volatility profile, this approach may yield profit in a trending bear market but could be vulnerable to false signals in a consolidating or choppy environment.

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