Market Overview for FUNToken/Tether on 2025-10-22

• FUNToken/Tether declined by 1.66% over 24 hours, closing at 0.003908 after testing key support zones.
• Price action showed bearish momentum, with RSI approaching oversold conditions and MACD confirming downward bias.
• Bollinger Bands reflected a moderate expansion in volatility, with price trading near the lower band in late hours.
• Volume spiked overnight during the downward leg, but turnover diverged slightly from price in early morning hours.
• A bearish engulfing pattern formed at the 0.004079 level, with key support now at 0.00393–0.003895.

FUNToken/Tether (FUNUSDT) opened at 0.004179 on 2025-10-21 at 12:00 ET, reached a high of 0.004258, a low of 0.003862, and closed at 0.003908 on 2025-10-22 at 12:00 ET. Total traded volume was 42,526,860.00, and notional turnover stood at $165.15 million over the 24-hour period. The pair saw bearish momentum develop through the latter half of the session, with key Fibonacci and Bollinger Band levels influencing price behavior.

Structure & Formations

Price action formed a bearish engulfing pattern at the 0.004079 level, signaling a potential reversal from bullish to bearish sentiment. A notable doji appeared at 0.004008 during the early morning, suggesting indecision among traders. Key support levels were identified at 0.00393 (Fibonacci 61.8%) and 0.003895 (lower Bollinger Band touchpoint), with resistance near 0.004085 and 0.004125. A 15-minute chart showed a descending channel formation, with price consolidating near the channel’s lower boundary.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages were in a bearish crossover, reinforcing the downward trend. On the daily timeframe, the 50-period MA sat above the 100- and 200-period MAs, forming a bearish alignment. The 50-period MA currently resides at 0.004147, while the 200-period MA is at 0.004171, indicating a long-term bearish bias.

MACD & RSI

The MACD crossed below the signal line, with the histogram showing bearish divergence as price declined. RSI entered oversold territory in the final hours of the session, closing near 29. This suggests the pair could experience a short-term rebound or consolidation, but sustained momentum remains bearish unless RSI breaks above 40. Both indicators confirm a bearish momentum phase, with MACD bars elongating during the decline.

Bollinger Bands

Bollinger Bands widened in the afternoon hours as volatility increased, with the 20-period middle band tracking price downward. By late evening, price traded close to the lower band, which sat at 0.003895 during the final candle. A bounce above the middle band (0.00396–0.00400) would suggest a potential rebound, but a retest of the lower band is likely in the next 24 hours.

Volume & Turnover

Volume spiked during the 20:00–23:00 ET window as price broke below 0.004035. Turnover increased moderately, aligning with price action in the early part of the session but diverging during the late-night decline. This divergence suggests a weakening bearish conviction among traders, especially as RSI approached oversold conditions. However, the volume-to-turnover ratio remained stable, indicating a consistent flow of liquidity.

Fibonacci Retracements

Fibonacci levels were key in determining price direction during the session. The 61.8% retracement level (0.00393) acted as a psychological floor, with price bouncing off it twice. The 38.2% level (0.004065) failed to hold during the overnight decline, suggesting that the pair may test lower Fibonacci levels, such as the 23.6% (0.004145), in the near term. A break below 0.003895 could trigger a deeper correction toward 0.00385–0.00383.

Backtest Hypothesis

A backtest was conducted using a basic RSI-based strategy: entering long positions when RSI falls below 30 and holding for a maximum of 7 calendar days. The strategy uses daily close prices for the RSI calculation and applies to the FUNUSDT pair on a spot market basis. Initial assumptions include a 14-period RSI on daily bars and no added stop-loss or take-profit rules. This approach aims to capture potential mean-reversion opportunities in a volatile market environment. The performance of this backtest could be further refined by adjusting the RSI period, incorporating intraday data, or adding volatility filters based on Bollinger Bands or moving averages. The next step would involve comparing the strategy to a benchmark, such as a buy-and-hold approach, to assess relative performance.