Market Overview: Prom/Tether Faces Sharp Correction on Elevated Volume

Summary
• Prom/Tether fell 31.9% over 24 hours, reaching a key support at ~$4.05.
• Strong bearish momentum confirmed by RSI and MACD divergence.
• Volatility spiked during the collapse, with massive volume surges.
• Bollinger Bands show price near the lower band, suggesting extreme bearish pressure.
• A potential rebound may test the 50-period MA (~$4.40) for near-term resistance.

Prom/Tether (PROMUSDT) opened at $6.695 on 2026-01-15 at 12:00 ET, peaked at $6.698, and closed at $4.118 on 2026-01-16 at 12:00 ET. Total volume was ~1,361,000 and notional turnover reached ~$5,548,000 over the 24-hour period.

Structure & Formations

Price formed a distinct bearish trend with multiple engulfing patterns and long lower wicks, especially during the sharp selloff between 00:00 and 01:00 ET. A key support level emerged near $4.05, where a doji formed, suggesting a potential short-term bottoming process.

Moving Averages

The 20- and 50-period MAs on the 5-minute chart acted as bearish guides, with price well below both. On the daily chart, the 50/100/200 MA crossover suggests a strong bearish bias, with price well below the 200 MA.

MACD & RSI

The RSI dropped into oversold territory (~30) during the late-night selloff, signaling potential near-term exhaustion. The MACD turned sharply lower, reinforcing bearish momentum and a lack of buying pressure at recent lows.

Bollinger Bands

Price collapsed to the lower Bollinger Band by the early hours of January 16, indicating extreme volatility and bearish bias. The band width had widened significantly during the selloff, suggesting heightened market anxiety.

Volume & Turnover

A massive volume spike occurred at 01:00 ET, with over 157,000 units traded and $821,000 in turnover, marking the worst hourly performance. Price and turnover moved in tandem, confirming the bearish breakdown.

Fibonacci Retracements

Key Fibonacci levels from the initial swing high (~$6.698) to the swing low (~$4.05) include 50% at ~$5.37 and 61.8% at ~$5.44. A potential rally could test the 50-period MA (~$4.40) or the 38.2% retracement at ~$5.42.

The sharp correction appears to have exhausted immediate bearish momentum, but a near-term test of $4.05 could trigger further declines. Investors should remain cautious of continued volatility and possible follow-through selling into the next 24-hour window.