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• Metis/Tether (METISUSDT) declined from 10.22 to 9.87 amid bearish momentum and declining volume.
• Key support tested at 9.83, with a potential rebound seen post-9:30 PM ET.
• RSI suggests oversold conditions, and price near the 20-period MA hints at possible reversal signals.
• Volatility remained low during the session, with price fluctuating within a tightening range.
• A sharp rally emerged after 5 AM ET, but failed to break key resistance at 10.04, hinting at indecision.
Metis/Tether (METISUSDT) opened at $10.21 on 2025-10-20 12:00 ET and closed at $9.87 by the same time on 2025-10-21. The 24-hour period saw a high of $10.22 and a low of $9.66, with a total volume of 83,246.92 and notional turnover of $802,783.87. The pair traded within a defined range, characterized by several intraday attempts to break out of consolidation phases, but failed to sustain above key resistance levels.
Price action formed multiple bearish patterns, including a long-legged doji at 23:30 ET and a bearish engulfing pattern at 4:15 ET. Support at 9.83 was repeatedly tested, particularly during late-night volatility, while resistance at 10.04 held firm. The 20-period moving average (around $9.94) acted as a dynamic support in the latter half of the session, suggesting potential for a short-term bounce.
The RSI indicator reached oversold territory in the early morning hours, which could signal an overextended downward move. However, the momentum failed to produce a sustained reversal, and the MACD histogram showed bearish divergence, indicating that sellers remained in control. Bollinger Bands contracted significantly during the overnight hours, suggesting potential for a breakout, but price remained within the expected range as volatility remained muted.
Fibonacci retracements of the 10.22 to 9.66 swing showed that 61.8% (around $9.88) and 38.2% (around $10.00) levels acted as key pivots. The failure to surpass 10.00 suggests a high likelihood of further consolidation or a test of the 9.83 support in the near term. On the downside, 9.66 appears to be a key psychological level, with potential for a deeper pullback if volatility increases.
The formation of a bearish engulfing pattern at 4:15 ET, combined with bearish MACD divergence and oversold RSI conditions, suggests the potential for a backtesting strategy focused on short entries following confirmed breakouts below key support levels. The recent failure to reclaim 10.04 and inability to hold above 9.88 could form the basis for a short-biased hypothesis.
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