Market Overview for API3/Tether (API3USDT) – 2025-09-20

• API3/Tether (API3USDT) traded within a tight range overnight before a sharp decline to 0.9103 before rebounding into positive territory in the morning.
• The pair showed strong bearish pressure early in the 24-hour window, confirmed by a deep bearish engulfing candle on 2025-09-19 23:30:00.
• A bullish reversal emerged during the early morning, forming a potential base for a short-term rebound.
• Volume remained elevated during the key reversal, suggesting conviction in the bullish setup.
• The RSI indicates moderate momentum with no clear overbought or oversold conditions at this time.

At 12:00 ET − 1, API3/Tether (API3USDT) opened at 0.9167, reaching a high of 0.9349 and a low of 0.9103 before closing at 0.9281 at 12:00 ET. Total 24-hour volume amounted to 1,132,316.29, with a notional turnover of $1,049,657.80.

The 24-hour chart displayed a volatile overnight session with sharp pullbacks and rebounds. A critical bearish engulfing pattern formed at 0.9167–0.9103, breaking key support and triggering a rapid decline. However, a strong reversal occurred in the early morning, with price recovering nearly all of the overnight losses and forming a potential base around 0.9164–0.9203. The 20-period and 50-period moving averages on the 15-minute chart crossed below the price in the early morning, confirming the short-term bearish bias. However, as the price bounced, it crossed above the 20-period MA, suggesting short-term traders began to re-enter.

The MACD crossed from negative into positive territory after the morning rebound, indicating improving bullish momentum. The RSI moved from oversold territory (near 30) toward neutral (mid-50s), suggesting exhaustion of the bearish move and possible follow-through. Bollinger Bands showed significant expansion during the overnight drop, with the price reaching the lower band at 0.9103. Volatility has since contracted slightly, with price hovering near the middle band, indicating a potential consolidation phase.

The volume profile showed a massive spike at 0.9103–0.9130, where price found a short-term floor. Turnover diverged from price during the initial decline, suggesting some short-covering occurred. A 38.2% Fibonacci retracement level at 0.9205 and the 61.8% level at 0.9255 appear to be key psychological zones for the next 24 hours. If the price closes above 0.9260, it could confirm the reversal and trigger a short-term bullish trend. However, a break below 0.9190 could reignite bearish momentum.

Backtest Hypothesis

Given the morning reversal and the strong bearish-to-bullish shift in sentiment, a potential backtesting strategy could be to enter long at a retest of the 0.9205 Fibonacci level with a stop-loss placed below 0.9190 and a target of 0.9255–0.9260. This setup is supported by the MACD turning positive and the RSI showing no overbought conditions yet. A short-term trend-following approach using 20-period and 50-period moving averages on the 15-minute chart could also be used, with entries based on price crossing above the 20-period MA after consolidation. Traders should monitor Bollinger Bands for signs of another expansion and watch for divergence in volume to assess the strength of any new trend.