Sign/Tether Market Overview

• SIGNUSDT traded in a range-bound pattern, with price fluctuating between 0.06624 and 0.06766.
• Momentum shifted multiple times throughout the day, with RSI hovering near neutral.
• Volume spiked after 19:00 ET, coinciding with a price rebound.
• Bollinger Bands showed mild expansion, indicating a potential breakout attempt.
• A bearish engulfing pattern formed early in the session, followed by mixed signals from subsequent candles.

Sign/Tether (SIGNUSDT) opened at 0.06624 on 2025-10-02 at 12:00 ET and closed at 0.06681 by the same time the following day. The price reached a high of 0.06766 and touched a low of 0.06624. The 24-hour trading volume amounted to approximately 35,631,158.0, with a notional turnover of around 2,387.78 (sum of open * volume for all intervals).

The candlestick pattern showed a bearish bias early in the session, with a strong bearish engulfing pattern from 16:00 ET to 16:15 ET. However, this was followed by a retest of that level and a partial recovery, forming a potential bullish continuation pattern later in the day. Notable support levels were observed around 0.06624–0.0664, while resistance emerged near 0.0674–0.0676. A long upper shadow on the candle at 20:45 ET suggested rejection at that level, with buyers re-entering after the close of that candle.

The 20-period and 50-period moving averages on the 15-minute chart crossed several times, with price oscillating between them, suggesting an absence of a strong directional bias. The 50-period SMA on the daily chart, however, remained above the 200-period line, indicating a neutral to bullish bias over the longer term. The RSI hovered between 35 and 55, with no clear overbought or oversold readings, reinforcing the range-bound nature of the session. The MACD line crossed the signal line twice, indicating potential short-term reversals, though no clear trend emerged. Bollinger Bands showed a moderate expansion during the late New York session, with price settling near the middle band, suggesting indecision.

The volume profile was uneven, with notable increases in trading activity after 19:00 ET, coinciding with a price rebound. The notional turnover increased during this period as well, aligning with the price action and suggesting genuine buying interest rather than wash trading. A divergence between volume and price was observed during the early morning hours, when volume remained low despite continued price movement, signaling potential exhaustion.

Backtest Hypothesis

The proposed backtest strategy involves a crossover-based system using the 20-period and 50-period moving averages on the 15-minute chart for entry and exit signals. The system would go long when the 20-period MA crosses above the 50-period MA and exit when the 20-period MA crosses below the 50-period MA, with stop-loss placed at the lowest low of the past three candles and take-profit at 2.5 times the average true range (ATR) over the past 14 periods. This strategy is best suited for a volatile, range-bound market like the one observed on 2025-10-02, where multiple crossovers occurred and could have offered multiple entry and exit points.