Market Overview for The Graph/Tether

Summary
• The price tested key support at $0.0400–0.0402 before rebounding and consolidating near $0.0405–0.0408.
• A bearish engulfing pattern formed after the 22:30 ET peak, signaling potential short-term bearish momentum.
• RSI and MACD divergence suggest weakening bullish momentum despite a modest rally late in the session.
• Volatility increased during the early afternoon ET selloff, with volume confirming the bearish move.
• The 20-period 5-minute EMA acted as a dynamic resistance, capping most upward attempts during the session.

The Graph/Tether (GRTUSDT) opened at $0.04097 at 12:00 ET-1 and traded between $0.04003 and $0.04129 before closing at $0.04008 at 12:00 ET. Total volume for the 24-hour period was 14,567,381.0 GRT, with a notional turnover of $593,266.64.

Structure & Formations

Price action revealed a bearish reversal pattern during the afternoon session, with a bearish engulfing candle forming at $0.04075 after a brief rally. This pattern, combined with rejection at the 20-period 5-minute EMA, suggests a short-term shift in sentiment. A key support cluster formed around $0.0400–0.0402, where price found a floor multiple times.

Moving Averages

The 20 and 50-period 5-minute EMA lines remained above the price, indicating short-term bearish bias. On the daily chart, the 50-period EMA sits at $0.0406, aligning with a potential inflection point for near-term direction.

MACD & RSI

The MACD histogram showed bearish divergence during the afternoon sell-off, with a sharp drop in bullish momentum. RSI dipped below 30 at $0.0403, suggesting oversold conditions but failed to generate a strong rebound, indicating cautious bearish sentiment.

Bollinger Bands

Volatility expanded during the selloff, with prices breaching the lower Bollinger Band at $0.04004. However, price quickly rebounded, suggesting temporary oversold conditions rather than a long-term reversal.

Volume & Turnover

The most significant price action—between 18:30 and 20:00 ET—was accompanied by increased volume and turnover. The sell-off at 18:30 ET saw a massive 1.6 million GRT traded, confirming the move. However, subsequent bullish attempts were met with lower volume, indicating limited conviction.

Fibonacci Retracements

Fib levels on the 5-minute chart suggest key retracement levels at 0.0408 (38.2%) and 0.0405 (61.8%) during the recent $0.0400–0.0412 swing. These levels corresponded with areas of consolidation and potential turning points.

The market appears to be in a consolidation phase ahead of a potential breakout or breakdown from the $0.0400–0.0408 range. A breakout above $0.0408 could signal renewed bullish momentum, but a sustained close below $0.0400 would likely trigger further downward pressure. Investors should remain cautious for potential volatility as key support and resistance levels are tested in the next 24 hours.