Market Overview for Test/Tether (TSTUSDT): Key Resistance and Momentum Signals

• TSTUSDT closed at $0.01972, down 6.0% over 24 hours amid bearish momentum.
• Price broke below key support at $0.01983, with RSI indicating oversold conditions.
• Volatility expanded early, followed by contraction in late session, hinting at range-bound near-term potential.
• Volume spiked during the initial rally to $0.02044 but faded sharply in the final 6 hours.

Market Overview for TSTUSDT

TSTUSDT opened at $0.01981 on 2025-10-23 at 12:00 ET and closed at $0.01972 on 2025-10-24 at 12:00 ET. The 24-hour range was $0.01964 to $0.02057, with a total trading volume of 43,847,482.9 and a notional turnover of approximately $879,000. The price action reflected bearish continuation with key Fibonacci and trendline levels tested.

Structure & Formations

Price action began with a bullish breakout above prior resistance at $0.02017, forming a bullish engulfing pattern around 18:00 ET. However, the rally failed to sustain, and a bearish trend emerged, with a key resistance at $0.02017 turning into support later. A notable bearish candlestick formation appeared at 06:30–07:45 ET, where price dropped from $0.02043 to $0.02023. A potential bearish reversal pattern may have formed after an early morning bullish divergence was followed by a sharp sell-off.

Moving Averages and Fibonacci

The 20-period and 50-period moving averages on the 15-minute chart crossed below price during the morning, confirming the bearish momentum. A Fibonacci retracement drawn from the high at $0.02057 to the low at $0.01964 showed oversold conditions near the 61.8% level at $0.01979. Price currently rests slightly below this level, indicating a possible bounce or consolidation into $0.0197–$0.01975.

Momentum Indicators and Volatility

Relative Strength Index (RSI) dipped into oversold territory below 30 late in the session, suggesting a short-term reversal could occur. MACD showed bearish divergence with price, as the MACD histogram declined despite a brief attempt at a rebound. Bollinger Bands expanded during the rally to $0.02057 but contracted significantly after the price declined, indicating reduced volatility.

Backtest Hypothesis

Given the presence of a bearish reversal pattern, oversold RSI, and divergences in MACD, a potential backtesting strategy could focus on identifying similar setups for short entries after a rally fails to sustain above a key Fibonacci retracement. A typical entry might involve a short trade initiated when price closes below the 61.8% retracement level of a recent bullish swing, confirmed by a bearish RSI divergence or a breakdown of the 20-period moving average. This strategy would require a liquid and well-covered asset to calculate the RSI accurately.