Liquity/Tether Market Overview

• Price surged to 0.794 amid late-night volatility but closed at 0.79
• RSI signaled overbought conditions at peak, suggesting potential pullback
• Bollinger Bands showed widening volatility, with price testing upper band
• Volume spiked during breakout and consolidation phases
• 15-min chart revealed bullish engulfing and bearish doji patterns

Liquity/Tether (LQTYUSDT) opened at $0.784 on 2025-09-15 at 12:00 ET and traded between $0.778 and $0.794 over the next 24 hours, closing at $0.79 on 2025-09-16 at 12:00 ET. The total trading volume reached 951,518.9 with a notional turnover of $722,392.3.

Structure & Formations

Price action on the 15-minute chart showed a key support around $0.780 and a resistance cluster near $0.790–0.794. The most notable formation was a bullish engulfing pattern near $0.780 and a bearish doji at the peak of $0.794. These signals suggest indecision and potential reversal. A consolidation pattern emerged following the breakout above $0.790, indicating traders are testing new levels before committing.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages were closely aligned, suggesting a neutral to slightly bullish trend. For daily analysis, the 50-day MA crossed below the 100-day and 200-day MAs, forming a bearish trend. This divergence between shorter and longer timeframes signals mixed sentiment among short-term and long-term traders.

MACD & RSI

The 15-minute MACD showed a strong positive divergence following the breakout above $0.790, with bullish momentum accelerating. However, the RSI peaked at 73, entering overbought territory, which could signal a near-term correction. The RSI then declined to 65, indicating the bearish pressure had yet to fully exhaust. Price may test key support levels in the coming hours.

Bollinger Bands

Bollinger Bands exhibited a clear volatility expansion, with price touching the upper band at $0.794, indicating strong bullish pressure. The width of the bands also widened, suggesting an increase in market uncertainty and potential for further price swings. The recent consolidation near the middle band implies traders are waiting for more directional clues before committing.

Volume & Turnover

Volume spiked dramatically during the breakout above $0.790 and again during the consolidation phase, indicating significant participation. However, the final bearish reversal at $0.794 was accompanied by lower volume, raising questions about the sustainability of the downward move. Notional turnover followed a similar trend, peaking during the breakout and dropping during the consolidation. A divergence between volume and price may signal a potential reversal in the near term.

Fibonacci Retracements

Applying Fibonacci to the recent swing from $0.780 to $0.794, the key retracement levels are 0.787 (38.2%) and 0.784 (61.8%), both of which were tested during the consolidation and reversal phases. These levels may serve as key support or resistance in the short term, depending on how the market reacts. A break below 0.784 could trigger further downside pressure.

Backtest Hypothesis

A potential strategy could be to enter long on a bullish engulfing pattern with stop loss below the 20-period MA and target the next Fibonacci level at 0.794. Alternatively, a short entry could be triggered by a bearish doji at overbought RSI levels, with a stop above the upper Bollinger Band. The combination of volume divergence and RSI exhaustion may provide a strong signal for a countertrend bounce, especially if the price holds above 0.787. This approach would align with a mean-reversion bias in a high-volatility environment.