Market Overview for Uniswap/Tether (UNIUSDT) on 2025-12-31

Summary
• Price declined from a 5.984 open to a 5.732 close amid bearish momentum.
• Volume spiked sharply at 16:45 ET, coinciding with a 5.842 to 5.736 price collapse.
• RSI and MACD indicate overbought conditions were reversed to oversold territory.
• Key support levels at 5.90–5.92 and 5.85–5.87 were repeatedly tested during the session.
• Volatility expanded dramatically during the final 3 hours, breaking below key Fibonacci levels.

Market Overview

Uniswap/Tether (UNIUSDT) opened at 5.984 at 12:00 ET-1 and traded within a declining trend through the session, reaching a low of 5.732 at 17:00 ET. Total volume for the 24-hour period was 3,091,750.67, with notional turnover of 1,859,865.09.

Structure and Patterns

The price action displayed a bearish breakdown, with key support levels at 5.90–5.92 and 5.85–5.87 showing increasing bearish pressure. A large bearish engulfing pattern formed around 16:45 ET as price collapsed from 5.842 to 5.736, signaling a shift in market sentiment. Multiple doji near 5.88–5.90 indicated indecision before the final leg down.

Moving Averages and Momentum

On the 5-minute chart, price closed below the 20 and 50-period moving averages, confirming a short-term bearish bias. The MACD crossed into negative territory, with bearish divergence suggesting potential for further downside. RSI fell below 30, indicating oversold conditions, but this may not be a reliable buy signal without a reversal above the 5.85–5.87 range.

Volatility and Bollinger Bands

Volatility expanded sharply after 16:45 ET as the price moved significantly below the lower Bollinger Band, confirming a bearish breakout. The contraction earlier in the session had indicated a period of consolidation, which ended with a violent downward move.

Volume and Turnover

The most significant volume spike occurred at 16:45 ET, coinciding with a 107,000-unit drop in price. Notional turnover rose sharply at the same time, reinforcing the bearish move. Divergence between price and volume at earlier lows suggests caution for further short-term selling.

Fibonacci Retracements

Price broke below key Fibonacci levels of 61.8% and 78.6% during the final 3 hours of the session. The 5.85–5.87 level corresponds closely with the 38.2% retracement of the earlier move from 5.92–5.98, making it a potential short-term support zone.

The market may attempt a bounce from 5.73–5.75 in the coming 24 hours, but bearish momentum could continue unless a strong reversal above 5.85–5.87 occurs. Investors should remain cautious of further downward volatility and potential for liquidation below 5.70.