Market Overview: Memecoin/Tether (MEMEUSDT) - Volatility and Buying Interest Emerge After Selloff

Summary
• Price tested key support at $0.000935, forming a bullish engulfing pattern at the 04:45 ET timeframe.
• Volatility expanded during the 19:00–20:30 ET selloff, with a high turnover divergence to the downside.
• RSI bottomed in oversold territory, suggesting potential near-term buying interest.
• 50-period MA on 5-minute chart crossed above price at $0.000945, signaling short-term bullish momentum.
• Bollinger Bands narrowed before the 07:00–09:30 ET rangebound consolidation, hinting at a potential breakout.

Market Overview
At 12:00 ET on 2025-12-23, Memecoin/Tether (MEMEUSDT) opened at $0.000946, hitting a high of $0.000952 and a low of $0.000918 before closing at $0.000949. Total volume over the 24-hour window was 436,823,559.0 units, with a notional turnover of approximately $416,318.

Price action over the 24-hour period displayed a sharp sell-off from $0.000967 to $0.000918 between 19:30 and 15:00 ET, before stabilizing and forming a bullish engulfing pattern around 04:45 ET. A key support level at $0.000935 was tested and rejected, but a subsequent bounce into consolidation from 07:00 to 09:30 ET reflected reduced volatility and increased buyer participation.

Structure and Patterns

Price formed a bullish engulfing pattern at $0.000944 on the 5-minute chart following the 15:00 ET low, suggesting a short-term reversal. A doji appeared at 00:45 ET, indicating indecision near $0.000948. On the daily chart, the 50-period moving average currently sits just below $0.000945, while the 200-period MA offers long-term support near $0.000941.

Momentum and Indicators

Relative Strength Index (RSI) bottomed in oversold territory near 26 during the 15:00–16:00 ET session, aligning with the price bounce. MACD showed a positive crossover in the early morning session, reinforcing short-term bullish momentum. Bollinger Bands saw a noticeable contraction before the 07:00 ET consolidation phase, suggesting potential for a breakout in either direction.

Volume and Turnover

Volume surged during the 19:00–20:30 ET selloff, peaking at 15,093,977 units for the 20:00 candle. However, notional turnover did not match the scale of volume, signaling a divergence. This may imply increased liquidation rather than aggressive shorting. Volume dropped sharply after 09:30 ET, coinciding with the consolidation phase, which reflects reduced speculative activity.

Fibonacci Retracements

The 38.2% retracement level at $0.000943 and the 61.8% level at $0.000951 were both key zones of interest on the 5-minute chart. Price bounced near the 38.2% level before pushing higher. On the daily chart, the 61.8% retracement of the most recent weekly swing appears to offer near-term resistance at $0.000960.

Over the next 24 hours, MEMEUSDT may see renewed buying interest if it consolidates above $0.000945, potentially testing the $0.000951–$0.000952 range. However, any retest of $0.000935–$0.000940 could trigger a short-term pullback. Investors should remain cautious around the 200-period MA level, as a close below $0.000941 may reintroduce bearish pressure.