Market Overview for Chainlink/Tether (LINKUSDT) – 2025-09-22

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• Chainlink/Tether (LINKUSDT) opened at $23.08 on 2025-09-21 12:00 ET, reaching a high of $23.20 and a low of $21.68 before closing at $21.19 on 2025-09-22 12:00 ET.
• Price dropped sharply after 00:45 ET, falling 2.7% to $21.19 in one 15-minute candle with a turnover of $109,260.
• Volume spiked dramatically near the session’s midpoint with a 15-minute candle showing 1,880,710 volume and $449,117 turnover.
• A bearish engulfing pattern formed around 06:15 ET with a 3.8% drop and a long lower wick indicating rejection of higher prices.
• RSI dropped into oversold territory, and Bollinger Bands tightened in the final hours, signaling potential volatility.

Chainlink/Tether (LINKUSDT) opened at $23.08 on 2025-09-21 12:00 ET and closed at $21.19 on 2025-09-22 12:00 ET, with a high of $23.20 and a low of $21.68. Total volume for the 24-hour period was approximately 4,725,376 units, and notional turnover reached $10,077,409. The price action displayed a sharp bearish reversal in the early hours of the session, with a significant spike in volume and turnover during the sell-off.

1. Structure & Formations

The price action reveals multiple key support and resistance levels throughout the 24-hour window. Resistance was tested around the $23.10–$23.20 range, with a failed breakout observed during the evening session. A strong support zone formed near $21.68–$21.95, with a rejection candle at $21.68 showing a bearish engulfing pattern and confirming the strength of that level. A doji formed near $22.15, indicating indecision.

2. Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages (SMA) both trended lower through the session, reinforcing the bearish momentum. On the daily chart, the 50-period SMA acted as dynamic resistance earlier in the session, with price falling below the 100- and 200-period SMAs, signaling a shift in sentiment toward a deeper correction.

3. MACD & RSI

The MACD line crossed below the signal line in early morning trading, confirming bearish momentum. RSI dropped below 30 during the sell-off phase, entering oversold territory. While this could signal a potential bounce, the extended period below 30 suggests continued downward pressure unless there is a strong reversal signal such as a bullish engulfing or a strong volume spike at the lower levels.

4. Bollinger Bands

Price moved within the upper Bollinger Band for much of the session until the sharp sell-off pushed it below the 2-standard deviation lower band. The width of the bands expanded significantly during the sell-off, indicating increased volatility. The tightening of bands in the final hours suggests a potential consolidation or reversal phase ahead.

5. Volume & Turnover

Volume surged during the sharp sell-off, with the candle at 06:15 ET showing 1,880,710 in volume and $449,117 in turnover — the highest of the session. This strong volume confirmed the bearish move. However, as price approached the key support zone around $21.68–$21.95, volume decreased, suggesting the selling pressure may be waning.

6. Fibonacci Retracements

On the 15-minute chart, the 61.8% Fibonacci retracement level from the recent high of $23.20 aligned closely with the support zone around $21.95–$21.68. This level appears to have acted as a critical reference for traders, with price bouncing off it in the final hours. On the daily chart, the 50% retracement level was tested earlier in the session but failed to hold.

7. Backtest Hypothesis

A potential backtesting strategy could involve entering a short position on confirmation of a bearish engulfing pattern at key resistance levels, with stop-loss placed above the 61.8% Fibonacci level and target set at the 38.2% level. A long entry may be considered at the 61.8% retracement level during a bounce, with a stop below a confirmed breakdown. This strategy would aim to capture both the bearish momentum and potential countertrend rebounds, leveraging confirmed patterns and Fibonacci levels from today’s action.