Market Overview: Kamino Finance/Tether (KMNOUSDT) – 2026-01-07

Summary
• Price dropped from 0.0615 to 0.0603 in 24 hours, forming bearish patterns.
• Volatility expanded, with volume spiking to 2.15 million at the low.
• RSI approached oversold levels, suggesting a possible short-term rebound.
• Bollinger Bands show a recent contraction, hinting at a potential breakout.
• Turnover diverged from price decline in late hours, signaling possible support.

Kamino Finance/Tether (KMNOUSDT) opened at 0.06113 on 2026-01-06 at 17:00 ET, reached a high of 0.06176, and closed at 0.06026 by 12:00 ET on 2026-01-07. The pair traded within a 24-hour range of 0.06009 to 0.06176. Total volume was 10,271,953.0, with notional turnover at $601,958.86.

Structure & Formations

Price moved in a clear descending trend, with a notable bearish engulfing pattern forming at 18:30 ET on 2026-01-06, as price closed at 0.05957 after opening near 0.0607. A lower low was formed around 20:00 ET at 0.05903, indicating strong bearish control. A potential support level appears near 0.0595, while resistance is forming around 0.0601–0.0603. A doji appeared at 03:00 ET, suggesting short-term indecision and possible near-term reversal.

Moving Averages and Momentum

On the 5-minute chart, price broke below both the 20-period and 50-period SMAs, confirming bearish momentum. The 50-period EMA sits at approximately 0.0606, while the 20-period EMA is at 0.0601, indicating a flattening of the bearish slope. The 50-period daily SMA is at 0.0613, suggesting further downward pressure if support fails.

MACD turned negative after 18:30 ET, with a bearish crossover and negative divergence in the final 6 hours. The RSI dropped to 28 near 04:00 ET, reaching oversold territory, which could indicate a potential bounce back.

Volatility and Bollinger Bands

Bollinger Bands widened significantly during the selloff from 18:30 to 20:00 ET, with price closing near the lower band, signaling high volatility. After 03:00 ET, the bands began to contract, suggesting a potential consolidation phase. Price has since remained within the bands, indicating controlled movement without breakout attempts.

Volume and Turnover Analysis

Volume spiked to 2,057,125 at 18:30 ET, coinciding with a sharp price drop to 0.05957. Turnover increased significantly during this move, confirming the bearish momentum. Later, after 03:00 ET, volume declined while price remained in a tight range, signaling reduced selling pressure. A divergence between price and turnover occurred in the final 3 hours, suggesting the selloff may be losing steam.

Fibonacci Retracements

Applying Fibonacci levels to the 5-minute swing from 0.06176 to 0.05903, the 61.8% retracement level is at 0.0603, which aligns with the recent consolidation range. The 38.2% level is at 0.0606, which could serve as a near-term resistance if the price recovers.

The market appears to be consolidating after a sharp bearish move, with key support at 0.0595 and resistance at 0.0603. While RSI suggests a short-term rebound may be in play, the broader trend remains bearish. A sustained close above 0.0603 could signal a short-covering rally, while a break below 0.0595 could extend the downward move. Investors should remain cautious, as volatility remains high and divergence in the final hours could point to an unpredictable next phase.