Illuvium/Tether Market Overview (ILVUSDT)

• ILVUSDT rose to $11.28 before retreating to $10.82, showing a volatile 24-hour session.
• Volume surged above 29,000 during a sharp sell-off, indicating a potential short-term reversal.
• RSI and MACD signaled overbought/oversold extremes, hinting at momentum shifts.
• Bollinger Bands widened with price action near the lower band, suggesting bearish pressure.
• A key support level appears around $10.85, with resistance likely near $11.05–$11.15.

The Illuvium/Tether pair (ILVUSDT) opened at $10.9 on 2025-10-23 at 12:00 ET and closed at $10.84 on 2025-10-24 at 12:00 ET, reaching a high of $11.28 and a low of $10.82 over the 24-hour period. Total volume traded was approximately 29,623.478, with a notional turnover of about $324,695. The price action was marked by a sharp bearish reversal from $11.28 to $10.84 in a single candle, raising questions about short-term sentiment and order flow dynamics.

On the 15-minute chart, the 20-period and 50-period moving averages were in a bullish alignment during the morning hours but later converged as the price dropped sharply. The daily 50-period, 100-period, and 200-period moving averages, while not visible in the data, would likely be closer to $11.0–$11.1 if the recent trend were to continue. The MACD histogram showed a strong bullish divergence in the early morning before turning bearish as the price corrected. The RSI spiked to overbought territory (above 70) in the early hours and then collapsed to oversold levels (below 30) as the sell-off took hold.

Bollinger Bands reflected an expansion in volatility during the late morning and afternoon, with the price moving near the lower band at $10.82, a potential signal of oversold conditions. A key Fibonacci retracement level at 61.8% (around $10.93) acted as a minor support during the correction, though it was ultimately broken. Volume surged in the 14:30–15:00 ET timeframe during the sharp decline, suggesting increased bearish activity or profit-taking from long positions.

The price pattern resembling a “shooting star” at the top of the morning rally, followed by a large bearish engulfing candle, suggests bearish exhaustion or short-term profit-taking. The divergence between price and RSI adds to the bearish bias, as the RSI bottomed earlier than the price, often a precursor to a reversal. The volume profile during the bearish move was notably high, reinforcing the conviction of the downward move. A key resistance zone appears at $11.05–$11.15, where previous buyers had stepped in during the morning rally. If this area holds, the pair may consolidate or face renewed selling pressure.

Backtest Hypothesis

A backtest using the Bullish Engulfing candle pattern combined with support level identification could offer valuable insights into ILVUSDT’s behavior. A potential strategy could be to enter long positions when a Bullish Engulfing pattern forms at or near a defined support level (e.g., within 3% of the 20-day low), with a stop-loss placed slightly below the pattern. Given the sharp bearish move in the last 24 hours, a backtest from 2022-01-03 to 2025-10-24 could help quantify the effectiveness of this approach. However, as noted, execution would require resolving the data retrieval issue for the specified ticker. Once data is confirmed and cleaned, the strategy can be implemented using 15-minute OHLCV data and visualized for performance metrics.