Somnia/Somnus Plunges After Late-Night Rally Fails to Hold

Summary
• Price swung sharply higher overnight, forming a bullish engulfing pattern near 0.1870.
• RSI overbought at 72, suggesting potential pullback, though volume confirms the rally.
• Volatility expanded after 2:15 AM ET, with Bollinger Bands widening and price reaching 0.2181.
• Key support at 0.1770 and resistance at 0.1875 appear critical for near-term direction.
• Turnover surged 12x during the late-night spike, aligning with price highs.

Market Overview

Somnia/Tether (SOMIUSDT) opened at 0.1852 on 2026-02-06 12:00 ET, reached a high of 0.2181, fell to a low of 0.1749, and closed at 0.1773 on 2026-02-07 12:00 ET. Total volume was 39,124,265.0 with a turnover of 6,738,829.04.

Structure & Formations

The price action overnight featured a strong bullish reversal near 0.1870, with a clear engulfing pattern forming after a prolonged bearish consolidation. The key support at 0.1770 held briefly before a rebound, while resistance at 0.1875 appears to have capped further advances.

Moving Averages and Momentum

The 5-minute chart shows the price closed above the 20-period and 50-period MA lines by late morning, confirming short-term bullish momentum. RSI reached overbought territory at 72, suggesting potential for a pullback, though volume remains aligned with price action, reducing divergence risk.

Volatility and Bollinger Bands

Volatility surged overnight, especially after 2:15 AM ET, with Bollinger Bands expanding and price reaching a high of 0.2181. The bands have since contracted slightly, with price hovering near the lower band, indicating renewed bearish pressure.

Fibonacci and Forward Outlook

From the swing high of 0.2181 to the low of 0.1749, the 61.8% Fibonacci retracement level is at 0.1872, a key area where price has stalled multiple times. A break above this could signal renewed bullish intent, but a retest of 0.1770-0.1760 appears likely in the next 24 hours. Investors should closely monitor volume and RSI for signs of exhaustion or confirmation.

A consolidation phase or short-term pullback could follow the recent overbought conditions, especially with RSI near 70 and price hovering below the 50-period MA. Traders should remain cautious as volatility remains high and key levels may trigger sharp moves either way.