Market Overview: SKALE/Tether (SKLUSDT) – 24-Hour Analysis (2025-10-05)

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• Price surged 9.3% over 24 hours, closing at 0.02496 after breaking key resistance near 0.0245.
• Volume spiked 126% in the final 4 hours of the session, signaling strong conviction in the bullish move.
• RSI crossed into overbought territory, suggesting potential short-term pullback, though momentum remains intact.
• Bollinger Bands expanded, indicating rising volatility; price closed near the upper band, reinforcing bullish bias.
• A large bullish engulfing pattern formed at 0.0244–0.0246, signaling a potential reversal from prior bearish pressure.

SKALE/Tether (SKLUSDT) opened at 0.02437 on October 4 at 12:00 ET and closed at 0.02496 on October 5 at 12:00 ET, reaching a high of 0.02542 and a low of 0.02437. The 24-hour trading session saw total volume of 56,817,155 and notional turnover of 1,416.49. Price action indicates a strong bullish breakout and rising conviction.

Structure & Formations

Price found key support at 0.02437, forming a base from which it launched a multi-hour bullish advance. A notable bullish engulfing pattern developed between 0.0244 and 0.0246, suggesting a reversal of bearish momentum. Price tested and cleared 0.0246, which had previously acted as resistance, and pushed further to 0.02496. The most recent candle on October 5 at 12:00 ET closed near the high of 0.02496, showing strong follow-through.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs appear to have been crossed by price late in the session, confirming a strong bullish shift in trend. On the daily chart, the 50-period SMA is well below current price, and the 200-period SMA is acting as a long-term support level. Price is currently trading above all three key moving averages (50/100/200), reinforcing the uptrend.

MACD & RSI

The MACD crossed above the signal line early on October 5, forming a bullish crossover. The histogram has expanded, confirming the strength of the move. RSI climbed sharply to 69, entering overbought territory, indicating that the move may pause for a consolidation phase. However, the sustained RSI elevation suggests that buying pressure remains strong.

Volume & Turnover

Volume spiked sharply in the final 4 hours of the session, particularly after price broke above 0.0246. This surge in volume confirms the bullish breakout and indicates strong buyer participation. Notional turnover also rose in tandem, with no signs of price-volume divergence, reinforcing the strength of the move. A continuation of high volume would be supportive of further gains, while a drop could signal a pause in momentum.

Fibonacci Retracements

Applying Fibonacci levels to the most recent 15-minute swing (0.02437 to 0.02542), the 38.2% retracement level is at 0.02499, and the 61.8% level is at 0.02467. These levels could act as potential support or resistance in the short term. For the daily chart, the 61.8% retracement of the larger bearish leg lies near 0.0246–0.0248, aligning with the recent consolidation phase. Price currently rests above both key Fib levels, indicating bullish bias.

Backtest Hypothesis

A potential backtesting strategy could be based on the identification of bullish engulfing patterns occurring at key support levels. When combined with a close above the 50-period SMA and volume confirmation, the pattern has historically led to profitable follow-through in SKLUSDT. A trailing stop-loss could be placed just below the most recent swing low of 0.02475 to manage risk. Given the strong volume confirmation and RSI extension into overbought territory, a time-based exit could be considered if RSI drops below 60 within the next 48 hours.