Market Overview: SKALE/Tether (SKLUSDT) on 2026-01-06

Summary
• SKLUSDT surged above $0.0114, forming a bullish breakout above a key 5-minute resistance.
• High volume confirmed price strength, with a 20-period MA showing upward momentum.
• RSI suggests moderate momentum, while Bollinger Bands show rising volatility.

SKLUSDT broke above a key 5-minute resistance near $0.0114 on strong volume, confirming a potential reversal from a consolidation phase. A bullish engulfing pattern appeared around 2026-0106 090000, followed by a strong push higher after a 1-hour consolidation. The price has remained above key support levels like $0.0112–$0.0113, suggesting a stronger near-term bias to the upside.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-minute chart are trending upward, reflecting positive momentum. The MACD has turned bullish with a positive crossover, while RSI stands at ~55, suggesting moderate buying pressure without overbought conditions. On the daily chart, SKLUSDT appears to be above its 50-day moving average, a positive sign for longer-term buyers.

Volatility and Bollinger Bands

Bollinger Bands have widened significantly, particularly in the last 4 hours, showing increased volatility. Price has traded near the upper band, especially after the 9 AM ET breakout, indicating strong bullish energy.

Volume and Turnover

Volume surged during the bullish breakout above $0.0114, confirming the move. Notional turnover also spiked during this period, aligning with price direction and validating the move. No notable divergence between volume and price was observed, suggesting strong conviction in the rally.

Key Fibonacci Levels

Applying Fibonacci to the last major 5-minute swing from $0.0112 to $0.0116 shows SKLUSDT currently at ~100% of that move. If this holds, a pullback to the 61.8% retracement level (~$0.0113) could be a key near-term target.

SKLUSDT appears poised to test $0.0116–$0.0117 as the next resistance zone, with a strong bullish setup in place. However, a pullback to test $0.0113 could offer another buying opportunity. Investors should remain cautious of overextension and possible consolidation.