Market Overview: Pepe/Tether (PEPEUSDT) — Bullish Reversal Amid Elevated Volatility

Summary
• PEPEUSDT traded lower overnight before forming a bullish reversal pattern with a close near the high.
• Price rebounded above 3.7e-06, supported by increasing volume and a narrowing RSI divergence.
• Volatility expanded during the morning ET push toward 3.97e-06, with Bollinger Bands widening.
• A 50-period MA crossed above 20-period MA midday, signaling a potential near-term trend shift.
• Strong buying pressure resumed post-noon, with a 20% increase in notional turnover over 3 hours.

Pepe/Tether (PEPEUSDT) opened at 3.73e-06 on 2025-12-18 at 12:00 ET, rose to a high of 4.11e-06, and closed at 4.03e-06 on 2025-12-19 at 12:00 ET, with a low of 3.63e-06 during the session. Total volume for the 24-hour period was 13.73 trillion, and turnover reached ~$54.95 million.

Structure & Formations

A key bullish reversal pattern formed overnight as price broke out of a descending channel and closed near the high of the 5-minute candle. The 3.7e-06 level emerged as a strong support, with a series of higher lows suggesting potential for further upward momentum.

A bullish engulfing pattern was visible between 00:00–00:30 ET, with a 1.2% price rebound.

Moving Averages and MACD

The 50-period MA crossed above the 20-period MA midday, forming a golden cross in the 5-minute chart, which may signal a near-term bullish shift. The MACD crossed into positive territory during the afternoon ET rally, confirming the strength of the upward move.

Relative Strength Index and Bollinger Bands

The RSI bottomed near 30 in the early hours, indicating oversold conditions before a strong rebound. Bollinger Bands expanded in the morning ET session as volatility surged during the push toward 4e-06. Price currently resides near the upper band, suggesting a possible consolidation or pullback may occur in the short term.

Volume and Turnover

Volume surged in the early morning and again post-noon, with the 14:45–15:00 ET period showing the highest 5-minute volume spike (416.1 billion). Turnover was strongly aligned with price, with no significant divergence observed in the 5-minute or daily charts.

Fibonacci Retracements

The 61.8% Fib level (3.85e-06) was briefly tested before a breakout to the upside. On the daily chart, the 38.2% retracement level (3.94e-06) appears to be a key area of interest.

Looking ahead, if the 4.04e-06 level is retested, a potential push toward 4.11e-06 could follow, though a break below 3.9e-06 may trigger a consolidation phase. Investors should watch for confirmation of bullish momentum on the 5-minute chart and divergence in the RSI as key near-term signals.