Market Overview for ENSOUSDC on 2025-10-22

• ENSOUSDC declined sharply from $1.817 to $1.511 overnight, forming a bearish trend with expanding volatility and volume.
• RSI entered oversold territory (<30), while MACD turned negative, reinforcing the downward momentum. • A bearish engulfing pattern emerged near $1.55–$1.59, confirming a shift in sentiment toward further sell pressure. • Bollinger Bands widened significantly, indicating increased price instability and higher short-term risk. • Volume spiked during the 1–3 AM ET window, coinciding with a sharp break below key support levels around $1.55 and $1.50.

Market Overview

Enso/USDC (ENSOUSDC) opened at $1.803 on 2025-10-21 at 12:00 ET and closed at $1.541 on 2025-10-22 at the same time. The 24-hour low reached $1.507, while the high was $1.817. Total volume amounted to 163,399.49 USDC, with a notional turnover of $276,638.24 (calculated as volume × price).

The price action displayed a strong bearish bias, with a consistent downward drift and several key bearish reversal patterns. A bearish engulfing pattern formed around 22:30–23:30 ET on the 15-minute chart when the pair moved from $1.673 to $1.628, signaling a clear shift in momentum to the downside. The move was supported by high volume and a sharp break below key support levels.

Structure & Formations

Price found strong resistance in the $1.70–$1.80 range, with several failed attempts to break above this zone. The $1.64–$1.59 and $1.55–$1.50 levels acted as key support areas, both of which were broken with high conviction. A doji formed near $1.543 at 10:45 ET, suggesting indecision, but it failed to hold. The most significant formation was the bearish engulfing pattern that formed after 23:30 ET, which marked the start of a more aggressive sell-off.

Moving Averages & Bollinger Bands

On the 15-minute chart, the 20-period and 50-period moving averages were both below price, confirming a bearish bias. Bollinger Bands had widened substantially, indicating increased volatility and instability in price direction. Price closed near the lower band, suggesting potential for further downside unless a strong reversal occurs.

MACD & RSI

The MACD crossed below the signal line in the early morning hours, confirming the downward momentum. RSI entered oversold territory below 30 during the 3–5 AM ET window, though this did not trigger a rebound. The divergence between RSI and price suggests the market may be oversold, but bearish pressure remains strong.

Volume & Turnover

Volume spiked during the 1–3 AM ET window as price broke below $1.55 and $1.50, with one candle showing a volume of 19,155.23 USDC. Notional turnover also increased during this period, confirming the strength of the bearish move. However, the lack of a rebound despite an oversold RSI indicates strong selling pressure, with little sign of buyers stepping in.

Fibonacci Retracements

Fibonacci retracement levels were applied to the key swing from $1.817 to $1.507. The 38.2% retracement level at $1.610 and 61.8% at $1.663 acted as short-term resistance but failed. The 50% level at $1.662 was also tested but rejected. The 38.2% level at $1.554 currently appears to be the most immediate resistance if price attempts a short-term rebound.

Backtest Hypothesis

To evaluate the bearish signal observed in the $1.673–$1.628 bearish engulfing pattern, a short entry could be triggered at the open of the next bar after the pattern completes. A common exit strategy involves holding the position for 5 trading days, or until the first bullish reversal pattern appears, whichever comes first. Given the recent volatility and lack of buying support, this approach may offer a favorable risk-reward profile, but it carries the risk of a false breakout or extended bearish trend.

Forward-Looking View & Risk Caveat

Looking ahead, ENSOUSDC may test the next support level near $1.49–$1.45 unless a strong reversal pattern emerges. Traders should monitor volume and RSI for signs of exhaustion. However, the current trend appears to be well-supported, and further downside remains likely in the near term. Investors should remain cautious and consider implementing stop-loss orders to manage risk in case of unexpected volatility.