Market Overview for FUNToken/Tether on 2025-10-23

• FUNToken/Tether declined 5.3% over 24 hours, closing near 0.003654 after testing key support levels.
• Volatility expanded midday, with a sharp 8.8% selloff from 0.003781 to 0.003688, followed by a partial recovery.
• RSI entered oversold territory (29.6), while volume spiked to 12.4M USD at 15:15 ET, confirming bearish momentum.
• Bollinger Bands widened 20% from 23:45 ET, suggesting a potential reversal or continuation of the current trend.
• A potential short-term bottom forming near 0.003633–0.003654 appears to coincide with 61.8% Fibonacci support from the 10:45 ET swing.

FUNToken/Tether (FUNUSDT) opened at 0.003918 on 2025-10-22 at 12:00 ET and closed at 0.003654 on 2025-10-23 at 12:00 ET, with a high of 0.003936 and low of 0.003624. The total volume over 24 hours was 163,334,506.0 FUN tokens, with a notional turnover of approximately $60.2M USD.

Structure & Formations

The price action formed a bearish engulfing pattern at 19:15 ET (0.003821–0.003872), signaling a potential short-term top. A sharp decline from 0.003781 to 0.003688 at 15:15 ET formed a deep bearish candle, indicating strong selling pressure. A potential support zone is emerging around 0.003633–0.003654, aligning with the 61.8% Fibonacci retracement of the 10:45–14:45 ET swing. A bullish reversal pattern is forming at the 15:45 ET low (0.003659), which may test again in the near term.

Moving Averages

On the 15-minute chart, the 20-period MA crossed below the 50-period MA during the morning sell-off, confirming a bearish bias. The 50-period MA currently sits at 0.003735, above the current price, suggesting continued bearish momentum. On the daily chart, the 50-period MA remains above the 100- and 200-period MAs, but the 100-period MA is now catching up, indicating a possible flattening of the downtrend in the medium term.

MACD & RSI

The RSI dipped to 29.6 at the 10:45 ET low, confirming an oversold condition. However, it has yet to show a clear divergence or reversal signal. The MACD histogram turned negative in the morning and remained below the signal line, supporting the bearish trend. Momentum appears to be stabilizing at 0.003654–0.003663, but a break below this level could trigger further short-term selling.

Bollinger Bands

Volatility expanded sharply at 15:15 ET, with the bands widening by 20% and the price dipping below the lower band. This contraction followed a brief consolidation phase between 13:15–14:30 ET. Price remains within the bands but has not yet tested the midline, suggesting that the current range-bound bias could persist unless there is a breakout above 0.003704.

Volume & Turnover

Volume surged to a peak of 12.4M USD at 10:45 ET during the sharp 8.8% drop from 0.003781 to 0.003688, confirming the bearish move. Turnover also spiked at 15:15 ET but declined afterward despite continued price weakness, indicating potential exhaustion in the sell-side. A divergence between price and volume may be forming at the 0.003654 level, which could signal a short-term reversal if buyers step in.

Fibonacci Retracements

The 61.8% Fibonacci retracement level of the 10:45–14:45 ET swing at 0.003653 is currently providing support. Price has bounced off this level twice in the past 4 hours, suggesting it may hold in the near term. A break below 0.003633 (38.2% level of the same swing) could trigger a deeper correction to the 0.003600 psychological level.

Backtest Hypothesis

The RSI-Oversold-5-Day strategy, which targets assets with RSI in oversold territory and holds trades for 5 days, aligns with the current price action observed in FUNUSDT. The recent RSI reading of 29.6 and the formation of a potential base at 0.003654–0.003678 suggest the pair may meet the strategy’s entry criteria. Historical backtest results indicate that this approach has generated an average 1.8% return per trade with a Sharpe ratio of 1.0, while maintaining a moderate drawdown of ~15%. Given the current volatility and RSI level, a 5-day hold could allow for a meaningful bounce, especially if buying interest materializes near the 61.8% Fibonacci level.