Market Overview for Terra/Tether (LUNAUSDT): Volatile 24-Hour Move with Potential Rebound

Summary
• Price dropped sharply from 0.2014 to 0.1759 in early hours, then consolidated around 0.1900-0.1950.
• Volatility picked up after 0.1900 support retests, with bullish divergence on RSI suggesting potential bounce.
• Bollinger Bands showed contraction before 0.1900 and expanded as price rebounded, indicating increased market uncertainty.
• Volume spiked near 0.1900 and again during late-day rally, supporting the likelihood of a short-term reversal.

Opening and Closing Prices

At 12:00 ET-1, Terra/Tether (LUNAUSDT) opened at 0.2009, reaching a high of 0.2155 and a low of 0.1691. By 12:00 ET, the pair closed at 0.1910. Total volume was 95.28 million, with notional turnover of approximately $18.43 million.

Structure and Key Levels

Price initially formed a bearish engulfing pattern near 0.2009, followed by a deep selloff. A critical support level emerged around 0.1900, where price retested twice before forming a potential bullish reversal candle. Resistance is currently found at 0.1950, with a breakout likely to target 0.2000.

Momentum and Volatility

The RSI showed overbought conditions early in the session, but a bearish selloff pushed it into oversold territory. After 0.1900 support held, RSI diverged positively from price, hinting at a possible short-covering rally.

Bollinger Bands contracted before the consolidation phase, then expanded during the rebound, signaling renewed volatility.

Volume and Turnover

Volume surged as price approached 0.1900, confirming the strength of the support. Another volume spike coincided with the late-day rebound above 0.1900, reinforcing the bullish divergence. Notional turnover mirrored volume patterns, showing strong participation in both the selloff and rally.

Fibonacci and Moving Averages

Price bounced off the 61.8% Fibonacci retracement level of the early selloff, reinforcing the significance of the 0.1900 area. The 20-period and 50-period moving averages on the 5-minute chart now point to a flattening trend, suggesting a potential balance between buyers and sellers.

Forward-Looking Observation

The price appears to be testing a key support zone with bullish divergence forming on RSI, suggesting a short-term reversal may be in play. However, a break below 0.1900 could trigger renewed selling pressure. Investors should watch for a sustained close above 0.1950 for more conviction in the near-term bullish case.