Market Overview for Solana/Tether (SOLUSDT) - 2025-10-31

• Solana/Tether (SOLUSDT) opened at $185.69 and closed at $188.13, with a 24-hour high of $189.47 and a low of $179.05.
• A sharp bearish move in the early session was followed by a strong rally into the close.
• Volume surged over 122,000 SOL in one candle, signaling a potential shift in market sentiment.
• The RSI edged toward overbought territory, while Bollinger Bands widened, suggesting heightened volatility.
• Key resistance at $189.08 and support near $186.00 were tested multiple times during the session.

Solana/Tether (SOLUSDT) opened at $185.69 at 12:00 ET–1 and closed at $188.13 at 12:00 ET, with a 24-hour high of $189.47 and a low of $179.05. Total trading volume for the period was 1,443,136.99 SOL, and notional turnover amounted to approximately $265.78 million, reflecting high activity and price swings.

Structure and formations revealed key resistance levels near $189.08, which held during the session, and a strong support at $186.00. Several candlestick patterns stood out, including a bearish engulfing pattern early in the session followed by a bullish recovery. A key pivot was formed near $187.00, which acted as a psychological level for buyers and sellers alike.

On the 15-minute chart, the 20-period moving average crossed above the 50-period line, suggesting a bullish bias in the short term. On the daily chart, the 50-period and 200-period lines showed a bullish crossover, supporting a longer-term upward trend. The 200-day MA, a key indicator for institutional sentiment, sat comfortably below the price, signaling a strong bull market.

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The MACD turned positive mid-session and showed increasing momentum in the last four hours, reinforcing the recent bullish move. RSI climbed to over 65, indicating overbought conditions, but not extreme enough to suggest a reversal. Bollinger Bands widened as volatility increased, with price closing near the upper band—suggesting a continuation of the upward trend in the near term.

Bollinger Bands were wide at the end of the session, with the price closing just below the upper band at $188.13. This suggests a period of high volatility and a potential extension of the bullish move. The upper band acted as a resistance, and the price failed to break it, but held above the middle band, indicating strong upward momentum. The lower band sat near $184.20, offering a potential support level if a pullback occurs.

Volume and turnover were highly variable throughout the session, with a notable spike in the 4–5 AM ET period as the price surged above $189.00. Turnover spiked to over $12.5 million in one candle, confirming the price move. However, volume in the last few candles was relatively modest, which could signal a potential pause in the trend. A divergence between price and volume may indicate an exhaustion of buyers or a possible pullback.

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Fibonacci retracements drawn from the $179.05 low to the $189.47 high identified key levels. The 61.8% retracement at $185.75 and 50% level at $184.26 were tested, but the price rejected both and moved higher. The 38.2% level at $187.00 acted as a pivot, supporting the recent rally. These levels will be important to watch in the coming 24 hours for any potential retracement or continuation.

Backtest Hypothesis

A backtesting strategy could be built based on the Fibonacci and moving average signals observed today. For instance, an entry rule could involve buying on a close above the 200-day MA combined with a bullish engulfing pattern. The exit signal could be based on the first swing-low identified by a ZigZag indicator after the entry. For the trading symbol, we would use “SOLUSDT” to align with standard data feeds. The “next support level” could be defined as the first pivot low detected after entry, as this is a more robust and objective method. To enhance risk control, a trailing stop-loss could be set at the most recent swing-low or pivot low. Running such a strategy from 2022-01-01 to 2025-10-31 would provide insights into its effectiveness and robustness.

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