Stargate Finance/Tether Market Overview

• • •
• 24-Hour Price Range: STGUSDT traded between $0.1739 and $0.1930, with a -7.8% decline from 12:00 ET-1 to 12:00 ET today.
• Momentum Shifts: RSI dipped below 30 during late-night hours, suggesting oversold conditions; however, no strong rebound followed.
• Volume Divergence: Notional turnover surged to $5.1M at 14:30 ET, while price struggled to confirm strength, hinting at weak conviction.
• Key Pattern Identified: A Bearish Engulfing candle formed at $0.1909 on 19:00 ET, followed by a Bearish Harami at $0.1902 on 19:15 ET, reinforcing downward bias.
• Volatility Expansion: Bollinger Bands widened significantly during the early morning hours, indicating increased uncertainty in market direction.

24-Hour Open-High-Low-Close Summary

Stargate Finance/Tether (STGUSDT) opened at $0.1898 (12:00 ET-1), reached a high of $0.1930, dipped to a low of $0.1739, and closed at $0.1741 (12:00 ET). Total volume was 26,709,199.2 and notional turnover was $4.95 million for the 24-hour window.

Structure & Formations

Price action showed a clear bearish shift after an initial rally, forming a Bearish Flag pattern between $0.1910 and $0.1884. Key support levels emerged at $0.1850 and $0.1750, with $0.1739 acting as a recent floor. A Bearish Engulfing at $0.1909 and a Bearish Harami at $0.1902 signaled continued bearish momentum. A Bullish Morning Star could form at $0.1750–$0.1760 if price rebounds and closes above $0.1760.

Moving Averages

On the 15-minute chart, price is below both the 20-period and 50-period SMAs, confirming a short-term downtrend. For daily data, the 50SMA is approaching $0.1770, while the 200SMA is at $0.1810. Price is currently -4.1% below the 50SMA and -3.7% below the 200SMA, suggesting medium-term bearish bias.

MACD & RSI

The MACD has been negative for most of the 24 hours, with a bearish cross occurring near $0.1870. The RSI reached a 30 level at 05:30 ET, indicating oversold conditions, but failed to spark a meaningful rebound. This suggests bears could still control the near-term bias. RSI remains in neutral to bearish territory and could signal a potential short-covering rally if it rises above 40.

Bollinger Bands

Volatility expanded significantly in the early morning hours, with Bollinger Bands stretching to $0.185–$0.178. The price closed at $0.1741, slightly above the lower band, indicating potential oversold conditions. However, without a strong rebound, the lower band could hold as support. A retest of the $0.1739 level may trigger a further contraction in volatility.

Volume & Turnover

Volume spiked during the early morning and midday hours, with a notional turnover of $5.1M at 14:30 ET. However, this increase in volume did not lead to a corresponding price increase, suggesting a bearish divergence. The bearish divergence raises the probability of a short-term continuation of the current downtrend.

Fibonacci Retracements

Applying Fibonacci to the $0.1930–$0.1739 swing, key retracement levels are $0.1834 (38.2%) and $0.1785 (61.8%). Price tested $0.1834 during the early morning but failed to close above it. A successful rebound above $0.1785 could signal a temporary consolidation phase before the next leg lower.

Backtest Hypothesis

A potential backtest strategy could focus on Bearish Engulfing and Bearish Harami patterns forming near key resistance levels. Entry could be initiated at the close of the confirmation candle, with a stop-loss above the high and a take-profit at the next Fibonacci retracement level (e.g., $0.1785). This approach would align with the observed bearish momentum and volume divergence, testing the effectiveness of these candlestick patterns in a low-volatility bear market environment.