Market Overview for Spark/Tether (SPKUSDT)

Summary
• Price declined from 0.04104 to 0.04174 before closing at 0.042943.
• Volume surged past 2.5M at peak but declined afterward.
• RSI hit oversold territory, hinting at possible rebound.

Spark/Tether (SPKUSDT) opened at $0.040698 on 2025-11-09 at 12:00 ET, reached a high of $0.041039, and a low of $0.039838, closing at $0.042943 at 12:00 ET on 2025-11-10. Total volume amounted to 26.13M, and the notional turnover (volume × price) was roughly $1.07 million.

Structure & Formations

The price action displayed a strong bullish reversal pattern, beginning with a bearish session that saw a drop to a 24-hour low near $0.039838, followed by a sharp rebound. A key support level was identified near $0.0403, and a resistance level emerged around $0.0429, where price stalled for two consecutive candles. A bullish engulfing pattern formed after the 12:00 ET mark, indicating a potential reversal in momentum. A doji formed around $0.043561, suggesting indecision at that price level.

Moving Averages and Bollinger Bands

On the 15-minute chart, SPKUSDT crossed above the 20- and 50-period moving averages, signaling short-term bullish momentum. The 50-period line currently sits around $0.0427, indicating a potential support threshold. Bollinger Bands showed a moderate expansion in the final 12 hours, with price closing near the upper band at $0.042943, indicating a period of increased volatility.

MACD & RSI

The MACD (12,26,9) showed a positive crossover with increasing histogram size, aligning with the bullish breakout seen in the last 4 hours. RSI reached an oversold level of 29 before rebounding to 54, indicating a potential short-term reversal. The RSI histogram showed divergence with price at the 0.0403 level, suggesting possible bearish pressure on further downside.

Volume & Turnover

Volume surged to 2.5M at 02:15 ET, coinciding with the highest price of $0.04307, and remained elevated for 2 hours before cooling off. Notional turnover spiked at $1.07 million, driven by the $0.04307 peak and the rebound from the 0.0403 support. The volume/turnover divergence at the 0.0403 level suggests bearish pressure could persist in the near term.

Fibonacci Retracements

Applying Fibonacci retracement to the most recent swing (low at $0.039838 to high at $0.04307), the 38.2% level is around $0.0418 and the 61.8% level near $0.0426. Price appears to have stalled at $0.042943, just above the 61.8% retracement level, suggesting a potential short-term consolidation zone. On the daily chart, the 200-day MA sits at $0.0424, indicating a potential support threshold for the next few days.

Backtest Hypothesis

The backtest strategy relies on identifying Bullish Engulfing patterns over 15-minute and daily charts, as these often precede short-term price reversals. Given the recent volume and RSI divergence, SPKUSDT could serve as a suitable candidate for such a strategy. However, the data provider flagged an issue retrieving price data for SPKUSDT. To proceed with the backtest, it is essential to confirm the correct trading pair or use a standard symbol such as BTC/USDT or ETH/USDT. If SPKUSDT is valid, it may provide valuable insights into the effectiveness of this pattern-based strategy in smaller-cap or volatile tokens.