Market Overview for Hooked Protocol/Tether (HOOKUSDT)

• HOOKUSDT traded in a 24-hour range of $0.0661–$0.0693, closing near a key support level.
• Volume surged to 1.1M units during a sharp selloff in midday trading.
• RSI suggests oversold conditions after a rapid decline below 30, indicating potential near-term bounce.
• Bollinger Band contraction suggests low volatility ahead of a potential breakout.
• Bearish engulfing and breakdown patterns confirm downward momentum into the session close.

Hooked Protocol/Tether (HOOKUSDT) opened at $0.0689 on October 26, 2025, at 12:00 ET and closed at $0.0666 on October 27, 2025, at the same time. The 24-hour range spanned from a high of $0.0693 to a low of $0.0661. Total volume traded amounted to 10,754,926.1 units, with a notional turnover of approximately $721,171.31. Price action displayed bearish momentum, with key support forming at $0.0661–$0.0665.

Structure and price behavior suggest a consolidation phase at the lower end of the range. A bearish engulfing pattern formed near the session high, followed by a breakdown into a tight range between $0.0665 and $0.0670. A potential double-bottom structure is emerging, with the first pivot at $0.0661 showing resilience. A doji formed at the close, signaling indecision and possibly a near-term reversal. Traders may watch for a retest of key support and resistance levels for confirmation.

Moving averages on the 15-minute chart indicate a bearish bias, with the 20-period MA falling below the 50-period MA. On the daily chart, the 50-period MA is below the 200-period MA, reinforcing the downward trend. The 50/100/200 MA crossover is bearish, with the 100-period MA providing a near-term resistance at $0.0682. The price currently sits well below all major MAs, confirming a downtrend. A sharp pullback into the 50 MA may trigger short-term profit-taking but is unlikely to reverse the trend unless the price closes above the 100 MA.

MACD lines showed a bearish crossover earlier in the session, with the histogram expanding during the selloff. RSI dropped into oversold territory below 30, suggesting potential for a short-term bounce. Bollinger Bands contracted during consolidation, indicating low volatility before a potential breakout. Price is currently at the lower band of the Bollinger Band, which may serve as a short-term support. A break below $0.0660 could trigger further bearish momentum.

Backtest Hypothesis

To evaluate the potential effectiveness of a short-selling strategy based on technical indicators, a backtest using RSI and bearish engulfing patterns is proposed. A sell signal is triggered when the RSI (14-period, daily) crosses below 30 and a bearish engulfing pattern forms on the daily chart. A short position is entered at the next day’s open. The trade is exited when either: (1) RSI rises above 50 (suggesting a potential trend reversal), or (2) five calendar days have passed. A stop-loss of 8% is applied to manage risk.

This strategy aims to capture bearish momentum during overextended declines, with HOOKUSDT’s recent action near RSI 30 and a bearish engulfing pattern making it a viable test case. Given the current setup, a trigger condition may be near, though confirmation is needed before executing a trade.