Market Overview for Prom/Tether (PROMUSDT): Key Levels and Divergences on a Volatile 24-Hour Session

Summary
• Price formed key resistance at $8.49 and support at $7.89 during the 24-hour period.
• Momentum showed a shift from overbought (RSI 75) to oversold (RSI 30), reflecting mixed sentiment.
• Volatility expanded mid-day, with a notable Bollinger Band contraction preceding a breakout.
• Volume surged in the afternoon before declining sharply, indicating potential exhaustion in the rally.
• A bullish engulfing pattern emerged near $8.11, suggesting short-term buying pressure.

Market Overview

Prom/Tether (PROMUSDT) opened at $8.086 and reached a high of $8.691 before settling at $7.874 by 12:00 ET. The pair traded between $8.068 and $8.691, with total volume amounting to 215,047.8 and turnover of $1,799,318.7. The session exhibited a strong price swing and notable divergence in volume.

Structure & Formationsa detailed 5-minute candlestick chart showing the bullish engulfing pattern near $8.11, the bearish reversal at $8.492, and the doji at $8.304, along with key support and resistance levels

The price action on the 5-minute chart revealed several key levels and patterns. Resistance was strongly tested at $8.492, where a bearish reversal occurred. A subsequent breakdown led to a key support area at $7.896, which held briefly before breaking. A bullish engulfing pattern formed near $8.11, indicating a short-term reversal in sentiment. A doji near $8.304 also hinted at indecision in the market.

Technical Indicators

The 5-minute MACD showed a positive divergence early in the session, but it quickly flattened as the price moved lower. RSI moved into overbought territory (75) during the afternoon rally but fell sharply into oversold territory (30) by the close, suggesting a possible exhaustion of both bullish and bearish momentum. On the daily chart, the 50-period MA crossed below the 200-period MA, indicating a bearish bias.

Bollinger Bands showed a significant expansion in the morning, followed by a period of contraction in the midday session. Price broke out of the upper band during the afternoon rally, confirming a short-term overbought condition.

Volume & Turnover Analysis

Volume surged sharply during the afternoon hours, particularly between 18:15 ET and 19:45 ET, where several large-volume candles pushed the price higher. However, volume sharply declined after 20:45 ET, even as the price continued to fall. This divergence suggests weakening bearish conviction. Notional turnover mirrored volume, peaking during the same period before tapering off.

Fibonacci Retracements

On the 5-minute chart, the price retraced to the 61.8% Fibonacci level at $8.25 during its afternoon rally, but failed to hold and continued its decline. On the daily chart, the breakdown from key resistance below the 38.2% Fibonacci level at $8.107 confirmed a bearish continuation.

The 24-hour session for PROMUSDT suggests a possible continuation of the bearish trend, though short-term bullish patterns like the engulfing candle near $8.11 may offer a re-entry opportunity for cautious buyers. Traders should monitor volume for confirmation of any new trend and be prepared for increased volatility in the next 24 hours.