Market Overview for Sun/Tether (SUNUSDT) on 2025-10-06

• SUNUSDT broke above a 0.02483 resistance with a bullish engulfing pattern at 08:45 ET.
• RSI surged into overbought territory while Bollinger Bands widened, signaling increased volatility.
• Volume spiked to 2.1M at 08:45 ET and then dropped, indicating divergences in buying pressure.
• Price action shows a 3.1% 24-hour gain with 0.02471 as key support and 0.02509 as key resistance.
• A 50-period MA on the 15-min chart is bullish, while the 200-day MA shows a longer-term bearish bias.

Sun/Tether (SUNUSDT) opened at $0.0248 on 2025-10-05 at 12:00 ET and closed at $0.02485 on 2025-10-06 at 12:00 ET, reaching a high of $0.02509 and a low of $0.0246. Total volume over the 24-hour period was 92,591,918 and notional turnover was approximately $22.86 million. The price closed above the 50-period MA on the 15-min chart but remained below the 200-day MA on the daily chart.

Structure and formations revealed a bullish engulfing pattern at 08:45 ET, signaling potential short-term buying momentum. Support is forming around $0.02471, where the price previously consolidated, while resistance is expected at $0.02509, the high of the 15:45 ET candle. A potential breakout above this level could lead to a 0.02509–0.0252 range. A breakdown below $0.02471 may trigger further correction toward $0.0246.

MACD showed a bullish crossover during the early morning hours, aligning with the price breakout. RSI entered overbought territory (~70) near the high of $0.02509, suggesting a possible near-term pullback. Bollinger Bands had been in a contraction phase through the night before expanding during the morning surge, indicating increasing volatility. Price action was consistently above the upper band during the breakout, which is bearish for the continuation of the rally unless accompanied by strong volume.

Volume was highest during the 08:45–09:00 ET period at over 2.1M, with the largest candle forming a bullish engulfing pattern. Turnover also spiked during this period, confirming the breakout. However, volume dropped significantly in the subsequent hours, indicating that buying momentum may be waning. Divergence between price and volume could signal an exhaustion of bullish momentum in the short term.

Fibonacci retracement levels for the 15-min chart highlight a key 61.8% retracement at $0.02483, which was tested and broken. On the daily chart, 61.8% of the recent leg up aligns with $0.02509, which has now become a critical psychological level. A retest of this level may offer a high-probability trading opportunity for both bulls and bears.

Backtest Hypothesis

A potential backtest strategy could involve buying SUNUSDT on a bullish engulfing pattern confirmation (close above open and above the prior candle) with a stop loss at the recent swing low. The target is the 61.8% Fibonacci extension of the engulfing candle. Using this approach on 2025-10-06 would have entered the trade at $0.02483 with a stop at $0.02471 and a target at $0.02509. This trade would have captured the morning breakout and yielded a 1.3% gain before price corrected. A 15-min RSI divergence could have been used to exit the trade early to lock in profits.