Market Overview for Memecoin/Tether (MEMEUSDT) - 2025-10-30

• Price action saw a strong intraday high of $0.001694 followed by a sharp correction to $0.001542.
• Volatility expanded during the 19:00–21:00 ET window, with large-volume candles driving the move.
• RSI suggests overbought levels early in the session before a bearish divergence later.
• Bollinger Bands show a recent contraction, signaling potential for a breakout.
• Turnover spiked in the 20:00–21:00 ET window, with MEMEUSDT trading over $108 million in that 1.5-hour period.

Memecoin/Tether (MEMEUSDT) opened at $0.001594 on 2025-10-29 at 12:00 ET and closed at $0.001535 at 12:00 ET on 2025-10-30, with a 24-hour high of $0.001694 and low of $0.001542. Total trading volume reached 1.55 billion, and notional turnover was $2.44 million.

The price moved through a volatile session marked by two distinct phases: a sharp intraday high driven by bullish momentum followed by a bearish correction. A large-volume candle at 20:45 ET ($0.001672) marked a peak in the bullish move. From there, the price declined over the next 3 hours, closing with a bearish engulfing pattern at 21:15 ET. This formation suggests a short-term reversal in sentiment, and key support was tested at $0.001542, where the price briefly found a floor.

Bollinger Bands show a recent volatility expansion during the 19:00–21:00 ET period, suggesting increased trader activity and uncertainty. RSI moved into overbought territory at 20:30 ET before diverging from price in the 21:00–22:00 window, indicating weakening momentum. The MACD crossed the signal line in the positive zone during the bullish phase but began to decay alongside the price drop. Volume was highest in the 20:30–21:15 ET period, aligning with the peak and subsequent reversal.

Fibonacci retracements indicate key levels based on the intraday high-low swing: 38.2% at $0.001646 and 61.8% at $0.001569. The price closed near the 61.8% level at $0.001542, suggesting potential for consolidation or a rebound. Moving averages on the 15-minute chart (20/50 EMA) crossed bearish in the final hours, reinforcing the downward bias. The daily 200 EMA remains a critical long-term support at ~$0.001552, which is close to recent lows.

The immediate outlook points to a potential bounce from the 61.8% Fibonacci level if bulls can reclaim $0.001569. However, a break below $0.001542 could trigger further downside. Investors should remain cautious of the 50 EMA acting as a dynamic bearish threshold in the short term.

Backtest Hypothesis
The recent price action aligns with a potential strategy that targets overbought RSI levels and divergences as sell signals. A backtest could focus on entering short positions when RSI > 70 and MACD histogram begins to contract, particularly when volume spikes. Given the bearish divergence observed in the 21:00–22:00 window, a backtest using this signal would likely have yielded a profitable short trade. If MEMEUSDT continues to show similar patterns in overbought zones, this strategy could be refined for future use.