Summary
• Price action showed a key intraday swing low at $0.1087, followed by a 4.7% rebound by 02:00 ET.
• High volume confirmed a bullish reversal at $0.1124, forming a potential bullish engulfing pattern.
• Volatility expanded from $0.1084 to $0.1164, indicating increased market interest in the pair.
• RSI moved from oversold territory to neutral, suggesting potential consolidation ahead.
• Bollinger Bands widened significantly, signaling increased short-term uncertainty and possible range-bound behavior.
Treehouse/Tether (TREEUSDT) opened at $0.1087 on December 25 at 12:00 ET, reached a high of $0.1164, and closed at $0.1131 as of 12:00 ET on December 26. Total volume for the 24-hour window was approximately 10.1 million contracts, with a notional turnover of $1.13 million. The pair showed a strong bounce from a key support level, confirming a potential short-covering rally and a shift in near-term sentiment.
Structure and Candlestick Formations
A strong bearish impulse drove price down to $0.1087, forming a classic hammer pattern at the intraday low. This was followed by a bullish engulfing pattern around $0.1124, confirming a potential short-term reversal.
. A key support level appears to be forming in the $0.1090–$0.1100 range, while resistance is likely to be found at $0.1140–$0.1150.
Moving Averages
On the 5-minute chart, price is trading above both the 20 and 50-period moving averages, suggesting a short-term bullish bias. On the daily chart, the 50-period SMA is positioned slightly above the 100 and 200-period lines, indicating a potential consolidation phase ahead.
Momentum and Volatility
Relative Strength Index (RSI) moved from oversold levels (<30) to neutral (50–60), suggesting a potential pause in momentum. MACD lines showed a bullish crossover around 01:00 ET, reinforcing the reversal thesis. Bollinger Bands expanded significantly, reflecting increased volatility, with price currently sitting near the upper band, suggesting potential for a pullback or sideways consolidation.
Volume and Turnover
Volume spiked during the early morning hours, particularly around 00:30 ET and 02:00 ET, confirming the price bounce off the key support. Notional turnover followed a similar pattern, with no notable divergences between volume and price action. The largest single 5-minute turnover was observed at $0.1124, aligning with the bullish engulfing pattern.
Fibonacci Retracements
The recent swing low of $0.1087 and high of $0.1164 provide key Fibonacci levels for reference. . The 61.8% retracement is at $0.1136, where price appears to have stalled. This level could act as a potential resistance or pivot point for the next 24–48 hours.
The market appears to be entering a consolidation phase after a strong short-covering rally. While the immediate bias is bullish, traders should watch for a potential test of $0.1136 and possible pullback to $0.1110–$0.1115. A break above $0.1140 could signal a new leg higher, but risks remain if volume fails to confirm further gains.
Comments
No comments yet