Market Overview for RedStone/Tether (REDUSDT) on 2025-11-04

• Price closed 0.2917 from 0.2920, with a 0.10% decline.
• Volume surged to 978,908.8 units, indicating heightened activity post 02:00 ET.
• A key support level formed at 0.2813, with price testing it multiple times.
• MACD and RSI signaled bearish momentum during the early morning hours.
• Bollinger Bands tightened in the final 4 hours before 12:00 ET, suggesting a possible breakout.

The RedStone/Tether (REDUSDT) pair opened at 0.2920 on 2025-11-03 at 12:00 ET and reached a high of 0.2997 before closing at 0.2917 as of 12:00 ET on 2025-11-04. The 24-hour total volume amounted to 2,496,925.9 units, with a notional turnover of approximately $724,377 (based on closing prices). Price action revealed a consolidation phase in the afternoon, followed by a sharp retest of key support levels in the night session.

Structure & Formations

Price displayed a bearish continuation with a key breakdown below 0.2900 after a failed attempt to reclaim 0.2950 in the late night. A notable Bearish Engulfing pattern formed at 0.2913 on 2025-11-04 at 04:45 ET, which confirmed the bearish bias. Support at 0.2813 held multiple times, forming a strong base. Resistance at 0.2925 appears to be a reentry level for buyers but failed to sustain momentum.

Moving Averages

On the 15-minute chart, the 20SMA (Simple Moving Average) and 50SMA crossed bearishly in the late night hours, reinforcing the downtrend. The 50/100/200SMA on the daily chart showed a bearish alignment, with the price trading below all three lines. This suggests a continuation of the bearish bias is more likely than a reversal in the near term.

MACD & RSI

The MACD crossed bearishly below the signal line at 01:45 ET, with a negative histogram indicating a deepening bearish momentum. RSI dropped to 38.2% Fibonacci level, signaling moderate oversold conditions but not triggering a reversal signal. Momentum remains bearish, with RSI showing little sign of recovery.

Bollinger Bands

Volatility tightened in the final four hours before 12:00 ET, with price fluctuating within a narrow range near the midline. This suggests potential for a breakout in either direction. If the 0.2813 support breaks, volatility is expected to expand further downward; a retest of the 0.2925 resistance could also trigger a short-term rebound.

Volume & Turnover

Volume spiked sharply after 02:00 ET, with a peak of 138,112.8 units at 06:15 ET. This aligned with a bearish break below 0.2850. However, volume declined after 08:00 ET, which could indicate diminishing bearish pressure. Price and volume diverged slightly in the late morning, with price declining but volume remaining flat—suggesting a possible consolidation ahead.

Fibonacci Retracements

On the 15-minute chart, the 61.8% retracement level at 0.2873 held twice during the early morning session. On the daily chart, the 38.2% and 61.8% levels at 0.2940 and 0.2865 respectively defined the key support and resistance. Price retesting the 61.8% level in the next 24 hours is a probable scenario.

Backtest Hypothesis

To further validate the bearish setup observed, a backtest strategy could be applied. This strategy would short the pair when a Bearish Engulfing pattern forms and hold the position for three trading sessions. Given the observed Bearish Engulfing at 0.2913 on 2025-11-04, a short entry would align with the pattern. The exit would be set three 15-minute candles later, at 0.2880. Using daily close prices for P&L calculation, this approach could serve as a low-latency, pattern-based strategy. Running this over the 2022-01-01 to 2025-11-04 period would offer insights into its effectiveness across market cycles.