Market Overview: 1inch/Tether (1INCHUSDT) 24-Hour Price Action and Momentum

Summary
• Price declined from 0.148 to 0.1435, forming bearish engulfing patterns in the early morning hours.
• Volume spiked during the sell-off but turnover lagged, suggesting some divergence in conviction.
• RSI moved into oversold territory near 25, while MACD turned negative, hinting at bearish momentum.
• Bollinger Bands widened during the move down, indicating heightened volatility.
• A key support level appears to be forming near 0.1431-0.1436, with a 38.2% Fibonacci retracement coinciding closely.

The 24-hour period for 1inch/Tether (1INCHUSDT) opened at 0.148 on December 28 at 17:00 ET and closed at 0.1435 on December 29 at 12:00 ET. The pair hit a high of 0.1506 and a low of 0.1422, with a total volume of 2,407,845 and a notional turnover of 347,222.8.

Price Structure and Formations

The price action formed a clear bearish trend, punctuated by several engulfing patterns in the early morning hours (12:15–12:45 ET) as the price dropped sharply from 0.1454 to 0.1431. A notable low at 0.1422 was followed by a consolidation phase near 0.1431–0.1436, forming a potential short-term support zone. A doji formed near 0.1435 (17:00 ET) as well, suggesting indecision among traders.

Momentum and Volatility

The MACD crossed below the zero line during the early hours of the morning, signaling bearish momentum. The RSI dipped into oversold territory around 25 near the close of the 24-hour period, suggesting the potential for a near-term bounce. Bollinger Bands widened significantly during the selloff, indicating increasing volatility, but have begun to contract slightly in the past few hours.

Volume and Turnover Analysis

Volume surged during the decline, with the largest 5-minute volume occurring at 0.1431 (16:15 ET), where 132,706 contracts were traded. However, notional turnover did not increase proportionally, showing a divergence that may imply less conviction in the move. The price-volume relationship suggests that while volume supported the bearish move, the amount of capital flowing into the sell-side was somewhat limited.

Fibonacci Retracements

The 38.2% Fibonacci retracement level of the recent 5-minute swing (from 0.148 to 0.1431) aligns closely with the 0.1451 level, which the price tested multiple times during the afternoon and evening. On the daily chart, the 61.8% retracement level of a longer swing could provide further context for potential reversal levels in the next 24 hours.

The market appears to be testing a key support cluster around 0.1431–0.1436 and could consolidate near that area for the next 24 hours. A break below this level may target 0.1420, while a rebound could test the 0.1451 level. Investors should remain cautious of potential divergence in momentum indicators and watch for volume confirmation on any reversal attempt.