Market Overview for USTCUSDT: Volatility Peaks Amid Slight Bearish Bias

Summary
• Price remains in a narrow range, with key resistance near 0.00705 and support at 0.00692.
• Volatility surged after 7:00 AM ET, with volume peaking at 8.8M on large sell-off.
• RSI shows moderate momentum divergence late in the session, signaling potential near-term reversal risk.
• Bollinger Bands expanded sharply post-7:00 AM ET, indicating increased market uncertainty.
• A bearish engulfing pattern formed near 0.00696, coinciding with a drop in turnover.

TerraClassicUSD/Tether (USTCUSDT) opened at 0.00698 on 2026-01-07 12:00 ET, reaching a high of 0.00707 before closing at 0.0068 on 2026-01-08 12:00 ET, with a low of 0.00674 during the session. Total volume reached 46.6M, and notional turnover was $32,323.

Structure & Formations

USTCUSDT formed a key bearish engulfing pattern near 0.00696 following a short-term rebound, suggesting a possible near-term pullback. Support appears at 0.00692, where price found temporary stability, and resistance is near 0.00705, tested multiple times during the session. A doji formed at 5:15 AM ET, indicating indecision and a potential turning point before the sharp sell-off.

MACD & RSI

MACD showed a bearish crossover after 7:00 AM ET, coinciding with the large volume spike and price drop. RSI dropped sharply into neutral territory, suggesting a potential short-term oversold condition may form below 0.00685. However, divergence between price and RSI momentum late in the session may hint at a potential short-term rebound attempt.

Bollinger Bands

Price volatility and uncertainty increased significantly during the session, as seen by the sharp expansion of Bollinger Bands, particularly after 7:00 AM ET. The lower band was closely tested as price moved toward 0.0068, suggesting potential for a reversal if buyers step in near support levels.
Bollinger Bands expanded significantly after 7:00 AM ET, coinciding with the large sell-off, indicating heightened volatility and uncertainty. Price closed near the lower band, suggesting potential for a bounce, but only if volume confirms renewed buying interest.

Volume & Turnover

Volume spiked to 8.8M at 7:15 AM ET, with turnover reaching $59,941.29 — the largest in the session — during a rapid decline to 0.0068. This large-volume sell-off appeared to be driven by profit-taking or panic selling. However, no significant follow-through occurred afterward, and price failed to break below the 0.0068 level.

Fibonacci Retracements

Fibonacci retracements of the 0.00674–0.00707 swing showed price testing the 61.8% level near 0.00693 before continuing lower. If buyers re-enter, 38.2% at 0.00696 and 50% at 0.0069 could see renewed activity, though bearish momentum remains intact for now.

Market participants may watch the 0.00695–0.00696 zone for potential buying support, while a break below 0.00685 could signal further downside. Caution is warranted as volatility remains high, and momentum indicators suggest mixed signals for near-term direction.