Market Overview for Metis/Tether (METISUSDT): Volatility and Bearish Momentum in 24-Hour Window

• METISUSDT declined by 3.26% over the past 24 hours, closing near 12.88.
• A notable bearish engulfing pattern formed near 13.45, signaling potential downside momentum.
• Volatility expanded in the first half of the session, with intraday range exceeding 800 basis points.
• RSI reached oversold territory (~28), suggesting possible short-term bounce.
• Bollinger Bands showed a recent contraction followed by a sharp expansion, indicating a breakout phase.

The 24-hour period for Metis/Tether (METISUSDT) saw a bearish trend, with the pair opening at 13.42 on 2025-10-07 at 12:00 ET-1, peaking at 13.52, and bottoming at 12.58 before closing at 12.88 at 12:00 ET on 2025-10-08. The total volume amounted to 169,976.33 METIS, while the notional turnover stood at $2,185,062.22, indicating moderate liquidity and a relatively active session.

Structure analysis reveals a strong bearish bias, with key support levels forming around 12.66 and 12.58, and resistance around 13.27 and 13.45. A bearish engulfing candle formed during the early afternoon hours, confirming a shift in sentiment from bullish to bearish. A doji appeared near 13.25, signaling indecision among traders. The price action suggests that buyers are struggling to reclaim territory above 13.30, which is a critical psychological threshold for near-term reversals.

On the 15-minute chart, the 20-period and 50-period moving averages are both bearishly aligned, with the 50-period MA acting as a dynamic resistance below 13.30. On the daily chart, the 50-period MA is positioned at 13.15, and the 200-period MA is at 12.85, indicating a medium-term consolidation phase. The price is trading slightly above its 200-day MA, suggesting that while the long-term trend remains neutral, the short-term bias is bearish.

The MACD for the 15-minute timeframe shows a bearish crossover, with the line falling below the signal line, reinforcing downward momentum. The RSI has fallen into oversold territory (~28), suggesting the potential for a short-term bounce. However, divergence between price and RSI momentum could indicate a continuation of the bearish trend. Bollinger Bands have recently expanded, reflecting increased volatility, with the price trading near the lower band, which could imply a continuation of the downward movement or a rebound toward the midline.

Fibonacci retracement levels on the 15-minute chart suggest that the 61.8% level is at 12.73, and the 38.2% level is at 12.92. These levels could serve as key pivots for near-term support and resistance. The daily chart shows the 38.2% retracement at 13.00 and the 61.8% at 12.85, further reinforcing the likelihood of a consolidation phase before a potential breakout.

Backtest Hypothesis
A potential short-term trading strategy for METISUSDT could leverage the recent bearish engulfing candle and the RSI entering oversold territory. A sell entry could be triggered on a close below the 13.27 support level with a stop-loss above the 13.35–13.40 resistance zone. A target of 12.66 could be used as a primary objective, with a trailing stop to lock in profits as the price moves lower. This setup aligns with the bearish bias indicated by the engulfing pattern and the MACD divergence, making it a viable short-term sell-off strategy for a 4–6 hour window.