Market Overview for FUNToken/Tether (FUNUSDT) – 2025-10-05

• FUNToken/Tether (FUNUSDT) closed lower after a sharp early selloff, with bearish momentum increasing mid-day.
• Key support tested near $0.00905, while resistance remains at $0.00916–0.00918.
• Volume surged during the 17:15–18:00 ET selloff, confirming bearish continuation.
• RSI and MACD show oversold conditions, suggesting potential for a short-term bounce.
• Bollinger Bands tightened mid-session, indicating a possible breakout after consolidation.

FUNToken/Tether (FUNUSDT) opened at $0.009312 on 2025-10-04 12:00 ET and closed at $0.009076 on 2025-10-05 12:00 ET. The pair reached a high of $0.00933 and a low of $0.009002 during the 24-hour window. Total volume was 36,875,150.0 tokens traded, with a notional turnover of approximately $334,154. The price action reflects a bearish reversal pattern, with a large bearish engulfing candle and a deep selloff from $0.009217 to $0.00906.

Structure & Formations

The price action displayed a key bearish reversal pattern at the top of the move, marked by a large bearish engulfing candle on the 17:15–17:30 ET timeframe, confirming exhaustion at $0.009217. A significant support level was identified near $0.009058, where the price found a floor after a sharp decline. A doji formed at $0.00906–0.00907, indicating indecision and potential consolidation before a further move.

Moving Averages

On the 15-minute chart, the 20-period MA currently sits at $0.00909 and the 50-period MA at $0.00911, both trending downward and providing bearish bias. On the daily chart, the 50-period MA is at $0.00916, above the 200-period MA at $0.00913, with the price now below the 50 MA. This suggests a short-term bearish trend and possible continuation of the move lower.

MACD & RSI

The MACD is negative and trending downward, with the signal line crossing below zero, confirming bearish momentum. RSI is at 27, entering oversold territory, suggesting a potential rebound could occur. However, bearish divergence is visible in the MACD, reinforcing the likelihood of a continuation of the downward move rather than a reversal.

Bollinger Bands

Bollinger Bands have recently contracted between $0.00907 and $0.00913, indicating low volatility and a potential breakout. The price has since moved below the lower band, suggesting a continuation of the bearish trend. A move back into the band could indicate a short-term bounce but is unlikely to reverse the broader trend without a clear volume confirmation.

Volume & Turnover

Volume spiked during the 17:15–18:00 ET selloff, confirming bearish continuation. Turnover also increased during this period, aligning with the price action. A divergence between volume and price is not observed, suggesting the bearish move is supported by underlying demand to sell. However, a drop in volume during the late consolidation suggests exhaustion at the lower end, hinting at a potential short-term bounce.

Fibonacci Retracements

A recent swing from $0.00906 to $0.009217 shows key Fibonacci levels at 38.2% (~$0.00912) and 61.8% (~$0.00909). The price has held above the 61.8% level, suggesting it could act as a short-term support. On the daily chart, retracements from a higher swing suggest $0.009002 as a key level of interest for further breakdown.

Backtest Hypothesis

The backtest strategy outlined suggests a short-biased approach based on a combination of RSI oversold conditions and bearish engulfing candlestick patterns. A signal is triggered when RSI drops below 30 and a bearish engulfing pattern is confirmed, with a stop-loss set just above the recent swing high and a take-profit target at the nearest Fibonacci level. Given the current RSI at 27 and the confirmed bearish engulfing pattern, the strategy conditions are met, suggesting a short entry could be viable. The recent consolidation near $0.00907 may also offer a favorable entry point.