Sign/Tether Market Overview for 2025-11-05

Summary
• Price opened at $0.03754 and closed at $0.03787, with intraday high of $0.03845 and low of $0.03554.
• Volatility surged during the overnight session, with a high-low range of $0.0289.
• A bullish engulfing pattern emerged after a strong bearish session early on, suggesting potential reversal.

SIGNUSDT opened at $0.03754 on 2025-11-05 at 12:00 ET–1 and closed at $0.03787 at 12:00 ET. The pair touched an intraday high of $0.03845 and a low of $0.03554, reflecting heightened price swings. Total volume for the 24-hour period was approximately 58.1 million units, with a notional turnover of $2.15 million. The price action appears to show a key bullish reversal after a sharp decline.

Structure & Formations

The price structure revealed a key turning point in the early hours of 2025-11-05, where a strong bearish candle was followed by a large bullish engulfing pattern that closed near its high. This pattern suggests a potential short-term reversal in sentiment. Key support levels include $0.0376 and $0.0370, while resistance levels are forming at $0.0385 and $0.0390. A break above $0.0385 could signal the resumption of a longer-term bullish trend.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are currently in a bullish crossover, reinforcing the short-term upward momentum. On the daily chart, the 50-period MA has crossed above the 200-period MA, suggesting a broader shift in medium-term sentiment. Price appears to be trading above its 50-day average, indicating a possible continuation of the rally.

MACD & RSI

The MACD has turned positive and is rising, signaling strengthening bullish momentum. The RSI is currently at 58, indicating moderate strength with room to move higher before reaching overbought territory. If RSI climbs above 65, it may signal caution for short-term traders, though the overall momentum remains constructive.

Bollinger Bands

Volatility expanded overnight as price swung between the upper and lower Bollinger Bands. The price is now closing near the upper band, suggesting a possible continuation of the upward move. A retest of the lower band at $0.0370 could offer a favorable entry for bullish positions.

Volume & Turnover

Volume surged during the overnight session, particularly between 00:00 and 04:00 ET, with several large-volume candles indicating high conviction. Notional turnover also spiked during this period, aligning with the price action and confirming the strength of the bullish move. Divergence was not observed between price and volume, suggesting consistent market participation.

Fibonacci Retracements

Applying Fibonacci to the overnight low of $0.03554 and the high of $0.03845, key levels to watch include the 61.8% retracement at $0.0373 and the 38.2% at $0.0379. Price has already surpassed the 38.2% level and is approaching the 61.8% level, which may act as a critical pivot for the next 24 hours.

Backtest Hypothesis

While the above analysis highlights short-term bullish momentum and a potential reversal pattern, one could test a strategy based on such setups using a "Bullish Engulfing – 3-Day Hold" approach. The strategy would involve identifying a large bullish candle that fully engulfs the previous bearish candle and holding the position for a fixed period of three days. For this scenario, applying such a strategy to SIGNUSDT may align with the observed candlestick formation and momentum shift. Performance metrics and trade-level data can provide insight into the strategy’s viability under similar market conditions.