API3/Tether (API3USDT) Market Overview – 2025-10-13

• API3USDT surged from $0.6146 to $0.8239 before retracing to close at $0.742.
• Strong bearish momentum followed an overbought RSI signal near 80, leading to a sharp correction.
• Volatility spiked with a high-volume candle at $0.8239, followed by diverging price and volume action.
• Bollinger Bands expanded during the bullish phase, then tightened during the bearish reversal.
• Key resistance appears near $0.774–$0.805, with support at $0.742 and below at $0.734.

24-Hour Price Action and Volume

API3/Tether (API3USDT) opened at $0.6163 on 2025-10-12 at 12:00 ET, surged to a high of $0.8239, and closed at $0.742 as of 12:00 ET on 2025-10-13. Total volume reached 8,562,818.82, with a notional turnover of $5,932,497.60. The price action reveals a strong bullish breakout followed by a retracement and consolidation near $0.742.

Structure & Formations

The candlestick pattern over the past 24 hours shows a strong bullish thrust, followed by a bearish reversal, particularly around the $0.8239 high, where a long upper wick and declining volume signaled potential exhaustion. A bearish engulfing pattern is evident from $0.8239 to $0.742, suggesting sellers regained control. A doji formed near $0.742, signaling indecision among market participants. Support levels appear at $0.742 and $0.734, while resistance forms between $0.774 and $0.805.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed into bearish territory during the retracement phase, indicating a potential trend reversal. For the daily chart, the 50, 100, and 200-period moving averages remain in a constructive alignment if the price holds above $0.734, suggesting a possible retest of key resistance ahead.

MACD & RSI

The RSI surged into overbought territory (80+), then declined sharply into neutral levels, confirming the bearish reversal. The MACD histogram turned negative as bullish momentum faded, with the MACD line crossing below the signal line during the price drop, suggesting bearish divergence. This aligns with the overbought RSI as a trigger for the reversal.

The RSI spike and bearish MACD crossover occurred in tandem with the volume peak, reinforcing the validity of the bearish reversal signal.

Bollinger Bands

Bollinger Bands expanded during the bullish phase, especially around $0.8239, reflecting heightened volatility. After the reversal, the bands have contracted, with price currently trading within the lower half of the band. This suggests a period of consolidation may be unfolding, with potential for a breakout or continuation if the price breaks out of the band’s lower range.

Volume & Turnover

A sharp volume spike of 2,981,495.42 units occurred at $0.8239, with a turnover of $2,449,790.11, confirming the move higher. Subsequent candles show declining volume and turnover, indicating the move has lost steam. Divergence between price and volume becomes evident after $0.7729, as price continues lower but volume wanes, hinting at potential support testing.

Fibonacci Retracements

Fibonacci levels from the $0.6146 low to the $0.8239 high show key retracement levels at 38.2% (~$0.739) and 61.8% (~$0.702). The current close at $0.742 aligns with the 38.2% level, which could act as a short-term support. A break below $0.702 would validate a deeper correction.

Backtest Hypothesis

The backtest strategy of buying API3USDT when RSI is oversold and selling when overbought failed to capitalize on the recent price action. The sharp move to overbought territory and the subsequent bearish reversal would have triggered a sell signal at $0.8239, avoiding the drawdown that followed. However, the strategy’s negative Sharpe ratio of -0.73 and a drawdown of 24.4% indicate it is ill-suited for volatile environments like API3USDT. A more adaptive approach, incorporating divergence in volume and RSI confirmation, may yield better results in such conditions.