Market Overview: RedStone/Tether (REDUSDT) on 2025-12-08

Summary
• Price found support near $0.2550–0.2570 before testing resistance at $0.26.
• Volume spiked sharply after 12:00 ET as price collapsed, signaling potential distribution.
• RSI hit oversold levels twice, suggesting potential for short-term bounce.
• Bollinger Bands widened as volatility surged during late ET hours.
• A bullish engulfing pattern formed early morning ET near $0.2580.

RedStone/Tether (REDUSDT) opened at $0.2616 on 2025-12-07 at 12:00 ET, hit a high of $0.2671, a low of $0.2506, and closed at $0.2605 by 12:00 ET on 2025-12-08. Total volume was 1,752,643.0 units, with a notional turnover of approximately $458,446.12 over the 24-hour window.

Structure & Formations

Price action revealed two key support levels at $0.2550 and $0.2570, where the pair found multiple bids amid a sharp selloff. A bullish engulfing pattern formed around $0.2580 in the early morning hours, suggesting a potential short-term reversal. Resistance levels at $0.26 and $0.2605 were tested but not decisively broken.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages crossed multiple times, indicating a churning and indecisive short-term trend. The 50-period line hovered around $0.2575–0.2580, offering a baseline for potential buyers.

MACD & RSI

MACD showed a bearish crossover in the early part of the session, but a subsequent bullish divergence appeared as RSI bottomed around 30 and began rising. RSI remained in a healthy range for most of the day, occasionally hinting at overbought conditions near 60, though never reaching 70.

Bollinger Bands

Bollinger Bands expanded significantly after the selloff below $0.2580, with price moving to the lower band. This widening suggests increased volatility and could signal a potential consolidation phase as the bands realign.

Volume & Turnover

Volume surged sharply during the overnight selloff, particularly between 00:15–00:45 ET, when over 643,741 units traded. This large volume during a downward move suggests possible distribution or profit-taking. Turnover aligned with volume, confirming the move rather than signaling divergence.

Fibonacci Retracements

On the 5-minute chart, the $0.26 level served as a key Fibonacci 61.8% retracement level during a pullback from $0.2671. On the daily chart, the 38.2% retracement level at $0.2570 provided initial support before a rally.

Price may attempt a test of $0.2620–0.2650 in the next 24 hours, contingent on volume and order flow. Investors should monitor the $0.2550 support level, as a breakdown below could trigger a deeper correction.