Market Overview: Dolomite/Turkish Lira (DOLOTRY) – 24-Hour Summary

• Price dropped from $4.15 to $3.25 over 24 hours on strong sell pressure.
• Volatility peaked in the early session with a 15-minute swing of $0.99.
• RSI and MACD suggest oversold conditions, hinting at potential short-term bounce.
• Bollinger Band contraction in late session indicates possible consolidation or reversal.
• High turnover in early session contrasted with fading interest, suggesting distribution or profit-taking.

Dolomite/Turkish Lira (DOLOTRY) opened at $4.107 on October 10 at 12:00 ET and closed at $3.289 by October 11 at 12:00 ET, with an intraday high of $4.152 and a low of $0.825. Total volume amounted to 16,161,127.9 units over 24 hours, with a notional turnover of $44,624,047.3. Price action displayed clear signs of bearish exhaustion in the early hours, followed by a partial rebound.

Structure & Formations

DOLOTRY’s price structure showed a sharp bearish breakdown from $4.10 to below $3.00 in the early session, with a low of $0.825. This was followed by a moderate rebound to $3.35, forming a short-term base. Key support levels appeared around $2.95 and $3.20, with resistance forming at $3.34–$3.35. A notable bearish engulfing pattern was observed in the early morning, while a bullish morning star emerged after 07:00 ET, hinting at potential reversal or consolidation.

Moving Averages

On the 15-minute chart, DOLOTRY’s price fell well below both the 20 and 50-period moving averages, indicating strong bearish momentum. However, the 50-period MA has started to flatten slightly, suggesting a potential slowdown in the sell-off. On the daily chart, the price remains below all major moving averages (50, 100, and 200-day), signaling a broader downtrend.

MACD & RSI

The MACD line crossed below the signal line in the early hours, reinforcing the bearish momentum. The histogram has since contracted, indicating a potential slowdown in downward pressure. RSI fell into oversold territory (below 30) after the sharp drop, suggesting short-term exhaustion. A potential bounce could be expected if the RSI remains above 30 and MACD shows signs of convergence.

Bollinger Bands

Price action saw a sharp expansion in Bollinger Band width early on, with price reaching as low as $0.825 (well below the lower band). In the late session, the bands began to contract, with price hovering near the middle band. This suggests that volatility is reducing, and the price may be forming a range or preparing for a breakout.

Volume & Turnover

Volume spiked dramatically in the first hour of the session, with a 15-minute turnover of $2,106,617.3. This was followed by a steady decline in both volume and turnover, suggesting a lack of follow-through from early sellers. Price and turnover moved in alignment during the initial drop, but a divergence appeared in the afternoon, as volume decreased while price moved sideways.

Fibonacci Retracements

Applying Fibonacci retracements to the major intraday drop from $4.152 to $0.825, price found temporary support at the 61.8% level ($2.96), and then at the 38.2% level ($3.27). The current price of $3.289 aligns closely with this 38.2% level, suggesting a potential short-term pivot area.

Backtest Hypothesis

The described backtesting strategy likely aims to capture short-term mean reversion after a sharp bearish move, especially in an environment where RSI has entered oversold territory and Bollinger Bands have begun to contract. The hypothesis may involve entering long positions near Fibonacci support levels (e.g., 38.2%) while using a stop-loss below the 20-period moving average to manage downside risk. If DOLOTRY continues to consolidate near $3.25–$3.30 and shows signs of bullish divergence in RSI and MACD, this could validate the strategy’s assumptions. However, a break below $3.20 may invalidate the short-term rebound scenario.