Market Overview for RedStone/Tether (REDUSDT) on 2025-10-12

• Price action showed a strong bearish reversal after testing key resistance levels.
• Volatility spiked sharply during early ET hours, with significant volume and turnover.
• RSI and MACD suggested oversold conditions, but price action showed bearish bias.
• Bollinger Bands widened during the selloff, indicating heightened uncertainty.
• A bullish recovery emerged in the late ET session but failed to reclaim prior highs.

RedStone/Tether (REDUSDT) opened at $0.3743 on 2025-10-11 at 12:00 ET, reached a high of $0.3820, and closed at $0.3820 at 12:00 ET on 2025-10-12. Total volume for the 24-hour window was 2,365,070.3 and notional turnover was approximately $876,564.27.

Structure & Formations

Price tested several key resistance levels during the early ET session, particularly between $0.3750 and $0.3780, forming bearish engulfing patterns. A sharp decline followed, breaking below $0.3630 with a large bearish candle that formed a strong support level. Later in the session, price attempted a bullish recovery, forming a bullish harami pattern near the $0.3640–$0.3650 range, but failed to close above key resistance levels. The structure suggests a possible continuation of bearish bias, with $0.3600 now acting as a potential next target.

Moving Averages

On the 15-minute chart, the price closed above the 20-period and 50-period moving averages near the end of the session, signaling a short-term bullish bias. However, on the daily chart, both the 50-period and 200-period moving averages were bearish, with price closing well below both, reinforcing a longer-term bearish trend. The divergence between short-term and long-term moving averages highlights market uncertainty.

MACD & RSI

The MACD turned bearish during the early hours, with a negative crossover and declining histogram, confirming the bearish momentum. RSI hit oversold territory near 25–30 during the selloff, but failed to trigger a strong bullish reversal, suggesting weak buying pressure. Late in the session, RSI showed a mild upward move, indicating potential exhaustion in the bearish move. However, without a decisive break above 50, the bearish sentiment remains intact.

Bollinger Bands

Volatility expanded significantly during the selloff, with price dropping well below the lower Bollinger Band. This expansion often precedes a consolidation phase or a reversal, but in this case, price remained below the band. Later, as the market attempted a bullish recovery, it remained within the band, suggesting that volatility is returning to equilibrium. The band width suggests moderate volatility, but not extreme contraction or expansion that would signal a high-probability reversal.

Volume & Turnover

Volume spiked sharply during the initial selloff, with a large candle on $0.3617–$0.3635 driving much of the downward movement. Notional turnover also increased during this period, confirming the strength of the bearish move. In contrast, volume during the late ET recovery was relatively moderate, indicating a weaker attempt at a reversal. The divergence between bearish volume and bullish volume suggests that sellers are more aggressive in this phase, increasing the likelihood of a continuation of the bearish trend.

Fibonacci Retracements

Key Fibonacci levels were tested throughout the session. The $0.3750–$0.3780 range represented a 38.2% and 50% retracement of the previous upward leg. Price failed to hold these levels and instead broke down to the 61.8% retracement at $0.3630. Late in the session, a small recovery attempted a test of the 50% retracement level but failed, suggesting the market remains bearish. The next key level to watch is the 78.6% retracement at $0.3600.

Backtest Hypothesis

Given the observed bearish engulfing patterns, strong volume during the selloff, and RSI hitting oversold levels without a convincing reversal, a potential backtest strategy could involve shorting near the $0.3630–$0.3640 range, with a stop-loss above the 50% Fibonacci level at $0.3750 and a target at the 61.8% level at $0.3600. A trailing stop could be added as price moves toward $0.3600 to secure gains. This approach would align with the continuation of the bearish bias and the confirmation provided by both volume and momentum indicators.