Market Overview: SafePal/Tether (SFPUSDT) – Bearish Momentum and Key Support Levels

• SafePal/Tether (SFPUSDT) closed lower at 0.3482 after forming bearish price action amid heavy volume and declining momentum.
• Key support was tested near 0.3423, with RSI approaching oversold levels and volatility expanding as price dropped ~10%.
• Volume surged during the breakdown below 0.365, confirming bearish bias and divergence with earlier rally highs.
• Bollinger Bands widened following a breakdown, while 20SMA crossed below 50SMA, reinforcing short-term bearish momentum.
• Fibonacci levels at 0.347 and 0.342 suggest potential consolidation or rebound if buyers emerge near these levels.

At 12:00 ET–1 on 2025-10-29, SafePal/Tether (SFPUSDT) opened at 0.3683 and reached a high of 0.3700 before declining to a 24-hour low of 0.3423. The pair closed at 0.3482 at 12:00 ET on 2025-10-30, with total volume of ~990,699 and turnover of ~$349,100. The price action reflected bearish continuation, especially after breaking below key psychological levels in the afternoon.

Over the 24-hour period, SFPUSDT displayed bearish engulfing and long lower wicks, particularly between 18:45 ET and 04:30 ET, suggesting aggressive selling pressure. The 20SMA crossed below the 50SMA, a bearish signal, while the 50SMA was last seen at 0.3530. Resistance levels formed around 0.365–0.367, and support at 0.351 and 0.3423 held briefly but under heavy pressure.

MACD turned negative with bearish crossover, indicating weakening momentum. RSI dropped to ~28, nearing oversold territory but lacking follow-through buying. Bollinger Bands expanded significantly after the breakdown, reflecting increased volatility. Notably, price action remained below the 20SMA throughout the session, reinforcing the bearish bias. The 38.2% Fibonacci retracement at 0.347 and 61.8% at 0.3423 were closely tested, with the latter showing increased buying interest in the final hours.

Looking ahead, traders may watch whether SFPUSDT can stabilize near 0.3423 or retest 0.347 for potential rebound. A failure to hold above 0.3423 could trigger further downside toward 0.335–0.337, while a bounce from this level may test 0.350 again. However, traders should remain cautious as volatility remains elevated and short-term bearish momentum is intact.

The breakdown below 0.365 confirmed bearish continuation with volume spikes. A retest of 0.347 or 0.3423 could offer early reversal signals.

Backtest Hypothesis
The Bearish Engulfing pattern is a key reversal signal often used in crypto technical strategies. In the case of SFPUSDT, an attempt to automate pattern detection for this symbol encountered a data limitation, with the data source unable to find the ticker. This highlights a common issue in retail trading environments where less-liquid pairs may lack full candlestick metadata.

To address this, three alternative approaches were proposed:
1. Manually inputting historical Bearish Engulfing dates for SFPUSDT since 2022.
2. Using a supported symbol like BTCUSDT or ETHUSDT to run automated backtests.
3. Deriving the pattern from raw OHLC data to maintain accuracy for SFPUSDT.

Each approach has its trade-offs—manual input offers precision at the cost of time, a supported symbol allows fast execution but lacks pair specificity, and a local derivation requires technical setup but ensures fidelity. For SFPUSDT, the latter is particularly compelling given the recent bearish activity and the potential for meaningful signals if the pattern is confirmed.