Market Overview for Sun/Tether (SUNUSDT) – 2025-11-08

Summary
• Sun/Tether rose from $0.02248 to $0.02279, forming a bullish engulfing pattern around 19:15 ET.
• RSI and MACD show early overbought conditions, but momentum remains intact.
• Volatility expanded mid-session, with volume surging to 20.8M at peak.

Sun/Tether (SUNUSDT) opened at $0.02248 on 2025-11-08 and closed at $0.02279 by 12:00 ET, with a high of $0.02308 and a low of $0.02248. Total volume reached 45.3 million, with a notional turnover of ~$1.03 million during the 24-hour period.

Price action on the 15-minute chart suggests a strong bullish bias in the afternoon, with a key bullish engulfing pattern forming around 19:15 ET. This pattern was confirmed with a close above the previous bar's open, signaling a possible reversal after a consolidation phase. The 20-period moving average on the 15-minute chart crossed above the 50-period line, adding to the short-term bullish case.

Momentum indicators are mixed. RSI approached overbought territory (65–70), while MACD remained above the signal line with a positive divergence. Bollinger Bands showed a moderate expansion, with prices spending much of the day in the upper half, indicating elevated volatility. Volume spiked during the bullish breakout but has since consolidated, with no clear divergence between price and turnover.

Fibonacci retracements drawn from the 19:15–20:15 ET swing suggest key resistance near $0.0230 (61.8% level) and support near $0.0226 (38.2% level). The current close of $0.02279 sits between the 50% and 61.8% retracement levels, which could see increased trading interest.

The market appears to be in a short-term upswing, supported by volume, pattern, and momentum. However, traders should watch for a breakdown below $0.0226, which could signal a reversal and a return to range trading.

Backtest Hypothesis
The proposed backtest evaluates the profitability of the bullish engulfing pattern on SUNUSDT using daily data from 2022 to the present. The strategy assumes a market entry at the open of the next day following a confirmed pattern and an exit at the next open. Position size is set to 100% of available equity, with no leverage and 0.10% commission. This setup is ideal for assessing the reliability of reversal patterns in a high-volume, low-fee environment. By comparing the equity curve with buy-and-hold returns, the test will determine whether the pattern adds value in this specific asset.