Market Overview: Prom/Tether (PROMUSDT) — 2025-10-19

• Prom/Tether (PROMUSDT) traded in a volatile 24-hour range, with price testing both key resistances and supports.
• Momentum shifted multiple times, with RSI oscillating between overbought and neutral zones.
• Notional turnover increased significantly during late-night hours, suggesting growing market participation.
• A strong bullish engulfing pattern emerged around 08:30 ET, but it was later reversed by a bearish counterpart.
• Volatility, as measured by Bollinger Band expansion, increased during the morning session.

At 12:00 ET-1 on 2025-10-18, Prom/Tether (PROMUSDT) opened at $9.874 and reached a high of $10.034 and a low of $9.781 over the 24-hour period. The price closed at $9.898 by 12:00 ET on 2025-10-19. Total traded volume amounted to 60,996.99, with a notional turnover of $594,274.72, reflecting substantial price movement and participation across the day.

Structure & Formations

The candlestick structure displayed a mix of bullish and bearish momentum, with key support identified around $9.84–$9.86 and resistance at $9.90–$9.92. A strong bullish engulfing pattern formed at 08:30 ET as the price surged from $9.861 to $9.902, followed by a bearish engulfing at 10:30 ET, which reversed the move back to $9.814. These patterns suggest aggressive market sentiment shifts and possible reversal signals. A morning doji at $9.925 and an evening doji at $9.908 further underscored indecision and consolidation.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages (SMA) crossed multiple times, indicating a choppy short-term trend. The price frequently oscillated above and below the 50 SMA, especially during the 08:00–10:30 ET window, suggesting a lack of clear direction. On the daily timeframe, the 50-period SMA is at $9.86, 100-period at $9.84, and 200-period at $9.81, which may act as dynamic support/resistance levels. The price remains above the 200 SMA, signaling a potential continuation of the broader bullish trend.

MACD & RSI

The MACD line oscillated between positive and negative territory, with a positive peak of $0.042 at 08:30 ET and a negative swing of -$0.021 at 10:30 ET, reflecting the back-and-forth momentum. The RSI moved between 55 and 68 during the bullish phase and dropped to 40 during the bearish pullback, indicating a lack of strong overbought or oversold conditions. However, a sharp RSI divergence appeared at 10:30 ET, where the price made a new high but the RSI did not, hinting at potential exhaustion in the bullish move.

Bollinger Bands

Volatility expanded significantly between 08:00–10:30 ET, with the Bollinger Bands widening from a standard deviation of $0.02 to $0.04. The price reached the upper band at $10.034 and the lower band at $9.791, suggesting increased uncertainty. After this period, the bands contracted slightly, indicating a potential period of consolidation. The price remains in the upper half of the bands, suggesting continued bullish bias, but with heightened volatility.

Volume & Turnover

Volume spiked during the 08:30–10:30 ET session, reaching peaks of over 3,600 units per 15-minute interval. Notional turnover followed a similar pattern, peaking at $35,651.10 during the same period. A volume divergence occurred during the bearish engulfing at 10:30 ET, where the price dropped sharply but volume remained relatively subdued, suggesting potential weakness in the move. However, during the morning bullish phase, volume and price moved in alignment, validating the breakout.

Fibonacci Retracements

Applying Fibonacci levels to the $9.81–$10.034 swing, the 38.2% retracement level at $9.924 and the 61.8% level at $9.878 were key points of interest. The price bounced off the 61.8% level multiple times during the day, indicating strong psychological resistance. These retracement levels may offer strategic entry or exit points for short-term traders as the pair consolidates.

Backtest Hypothesis

A backtesting strategy based on identifying Bullish Engulfing and Bearish Engulfing patterns could provide actionable insights, particularly given the volatile 24-hour movement and the multiple reversal signals observed. A long entry could be triggered on the close of a confirmed Bullish Engulfing pattern above the 50-period SMA, with a stop loss placed below the low of the engulfing candle. A short entry could similarly be triggered on a Bearish Engulfing pattern, with a stop loss above the high. Given the strong volume confirmation during the morning surge, these signals would carry higher validity during high-liquidity periods. Further refinement of the strategy would require access to historical data in a standard format for accurate backtesting.