Market Overview for Prom/Tether (PROMUSDT)

Summary
• Price swung from $3.70 to $3.885, forming key resistance at $3.84 and support at $3.58.
• Strong bearish momentum signaled by RSI below 30 and a large-volume breakdown below $3.65.
• Volatility spiked during the sell-off, with Bollinger Band contraction preceding the sharp decline.
• Divergence between falling price and mixed turnover suggests mixed sentiment among traders.
• A 5-minute bearish engulfing pattern formed near $3.60, signaling potential continuation lower.

Prom/Tether (PROMUSDT) opened at $3.765 on 2026-01-17 at 12:00 ET and closed at $3.454 on 2026-01-18 at 12:00 ET. Price reached a high of $3.888 and a low of $3.400 during the 24-hour window, with total volume of 531,017.38 and turnover of $1,868,626.39.

Structure & Formations

Price action displayed a bearish bias throughout the period, with a key support level forming at $3.58 after a sharp breakdown from $3.84 resistance. A bearish engulfing pattern emerged on the 5-minute chart near $3.60, reinforcing the downward trend. The 20 and 50-period moving averages on the 5-minute chart confirmed the bearish momentum, while the daily 200-period MA acted as a critical reference point in the context of a broader downtrend.

MACD & RSI

The RSI fell below 30 during the late-night sell-off, indicating oversold conditions and potential for a short-term bounce. However, the MACD remained negative, with bearish divergence between price and momentum suggesting further downside could follow. The RSI has yet to show a strong reversal signal, indicating that sellers remain in control for now.

Bollinger Bands

Volatility expanded during the initial decline, as price moved outside the lower Bollinger Band before a brief consolidation period. A contraction in the band width was observed earlier in the session, preceding the sharp drop. This suggests traders may be watching for a breakout or breakdown from the band range in the near term.

Volume & Turnover

Volume spiked during the sell-off below $3.84, with a large 5-minute candle showing 71,494.78 volume as price fell toward $3.60. Turnover increased in tandem with the price action, confirming the bearish move. However, during the last 6 hours, volume has remained relatively balanced with price, suggesting no immediate shift in market sentiment.

Fibonacci Retracements

On the 5-minute chart, the 61.8% Fibonacci retracement level at $3.63 was quickly broken, confirming a deeper correction. On the daily chart, the 38.2% retracement level at $3.65 failed to hold, reinforcing the bearish bias. A potential bounce could find support at the 23.6% level near $3.50, but this appears unlikely unless a strong reversal pattern emerges.

In the next 24 hours, a test of $3.50 is a key concern, with a potential reversal likely contingent on a bullish break above $3.65. Traders should remain cautious, as divergent volume and turnover trends may indicate a shift in sentiment, but current price behavior suggests continued downward pressure.