Market Overview for REI Network/Tether (REIUSDT) on 2025-10-22

• REIUSDT declines from 0.01263 to 0.01189, closing with a bearish bias amid declining volume.
• RSI near oversold territory indicates potential for a near-term rebound.
• Price consolidates near a key 15-min Fibonacci level of 0.01185, suggesting a possible turning point.
• Volume and turnover diverge in afternoon ET, hinting at weakening conviction in the downtrend.
• Bollinger Bands narrow in late-night ET, signaling a potential breakout.

REI Network/Tether (REIUSDT) opened at 0.01263 on 2025-10-21 at 12:00 ET, reaching a high of 0.01275 and a low of 0.01174 before closing at 0.01189 at 12:00 ET on 2025-10-22. Over the 24-hour window, the pair recorded a total volume of 12,610,068.4 and a turnover of approximately $152,646, calculated using the average price of 0.0121.

The price action over the past 24 hours was characterized by a persistent downtrend, with a series of bearish 15-minute candlesticks forming from 19:00 to 21:30 ET. The most notable pattern observed was a bearish engulfing candle at 20:00 ET, where the body of the candle completely covered the previous candle’s range, signaling strong bearish momentum. This pattern was followed by a series of lower closes, which reinforced the short-term bearish bias. The price also found a temporary floor at 0.01174 on 2025-10-22 around 00:00 ET, but failed to retest that level again in the following hours.

The 20-period and 50-period moving averages on the 15-minute chart both trended downward, indicating sustained bearish pressure. The 20-period MA was last at 0.01192, while the 50-period MA was at 0.01196, with REIUSDT closing slightly below both. This suggests the price may continue to consolidate or test lower support levels in the near term. On the daily chart, the 50-day and 200-day moving averages were at 0.01235 and 0.01228, respectively, placing the current close well below these critical levels and reinforcing the bearish trend.

The Moving Average Convergence Divergence (MACD) line crossed below the signal line around 19:30 ET and remained in negative territory, confirming the bearish momentum. The histogram showed a consistent expansion in bearish momentum through the night and early morning hours. The RSI reached an oversold level of 28 at 02:00 ET, which is typically considered a potential reversal point. However, the RSI failed to rebound meaningfully and remained in the 20–30 range through the day, suggesting that the oversold condition has not yet triggered a reversal.

Bollinger Bands reflected a period of low volatility during the night hours, with the price trading tightly within the bands. A breakout occurred around 04:00 ET as the price moved below the lower band, signaling a potential acceleration in the downward move. The bands have since widened, indicating increased volatility and a possible continuation of the trend or a reversal as the price interacts with the lower band.

Volume and turnover patterns were mixed. While overall volume remained above average throughout the day (averaging ~150k per 15-minute interval), there was a noticeable divergence during the 03:30–05:00 ET period, where volume declined even as the price continued to fall. This may indicate weakening bearish conviction. Turnover mirrored volume trends, peaking at ~$2,400 at 00:45 ET and again at ~$2,500 at 05:45 ET, aligning with key bearish moves. A divergence in the 04:00–05:00 ET window may suggest that further downside could face resistance.

Fibonacci retracements drawn from the 0.01275 high to the 0.01174 low identified key levels at 0.01224 (38.2%) and 0.01197 (61.8%). The price briefly touched the 61.8% level at 06:30 ET but reversed higher, failing to hold above it. This suggests that the 0.01197–0.01200 range may serve as a near-term floor for the pair. A break below 0.01174 could target the next Fibonacci level at 0.01150, though this appears less likely in the short term.

Backtest Hypothesis

A potential backtest strategy for REIUSDT could be built around the bearish engulfing candle pattern and oversold RSI levels. Given the observed bearish engulfing pattern at 20:00 ET and the RSI reaching oversold levels later that evening, a backtest could simulate entries based on a combination of these signals. The RSI is typically set with a 14-period lookback, and an oversold threshold of 30. If both a bearish engulfing pattern and an oversold RSI occur on the same day, this could serve as a high-probability short signal. Alternatively, a more flexible strategy might allow for the engulfing pattern to appear within a few hours after the RSI first drops below 30.

For the “next resistance level” exit, the resistance could be defined as the recent swing high, which in this case could be the 0.01224 level. Resistance could also be defined as a fixed percentage move from the entry point, such as a 10% retracement to 0.01208, or via a technical indicator like the upper Bollinger Band. A stop-loss of 5% below the entry price could protect against sudden bullish reversals.

Risk controls could include a maximum holding period of three days if the target resistance is not reached. Using daily or 4-hour candles would allow for testing the robustness of the strategy across different timeframes. By applying this setup to the REIUSDT pair, we could evaluate whether the combination of candlestick patterns and RSI conditions provides a reliable signal for short-term bearish trades.