Market Overview: Conflux/Tether (CFXUSDT) Daily Candlestick Analysis

• Conflux/Tether (CFXUSDT) experienced a sharp 24-hour decline, closing near session lows after a midday pullback and late-night selloff.
• Key support tested at 0.1731 (16:45 ET), with a bullish reversal candle forming afterward.
• Volatility expanded significantly during the overnight hours, with turnover peaking at 0.1731.
• RSI remains oversold, indicating potential for a near-term bounce, while MACD signaled bearish momentum.
• Volume spiked at key turning points, aligning with price action during the 09:30–11:00 ET selloff.

Conflux/Tether (CFXUSDT) opened at 0.1771 on 2025-09-20 12:00 ET and traded between 0.1773 and 0.1722, closing at 0.1731 by 2025-09-21 12:00 ET. Total volume over 24 hours was 18,534,841.0, with notional turnover reaching approximately $3,298,098.75 (volume × average price). A sharp breakdown below key support levels occurred overnight, triggering a bearish consolidation that ended near session lows.

The price pattern suggests a bearish exhaustion phase, with a long bearish candle at 0.1722–0.1731 indicating a strong short-term bearish sentiment. A notable bullish reversal candle formed at 0.1731–0.1734 (16:45–17:00 ET), which may signal a near-term pause in the downtrend. Key support levels at 0.1731 and 0.1728 were tested, while 0.1755 and 0.1762 acted as minor resistance. A 15-minute doji at 0.1731–0.1734 further suggests uncertainty at the bottom.

MACD turned negative and showed a bearish divergence during the overnight selloff, aligning with the price drop. RSI fell into the oversold zone for most of the session, suggesting a potential bounce off 0.1731. The 20-period EMA on the 15-minute chart moved below the 50-period EMA, reinforcing the bearish bias. The 50-period daily EMA crossed below the 100-period EMA, adding to the bearish momentum. Bollinger Bands expanded significantly during the overnight selloff, indicating heightened volatility, with price finding a floor near the lower band.

Fibonacci retracement levels from the 0.1773 high to 0.1722 low showed 61.8% at 0.1731, which coincided with the last support area before a reversal formed. A 38.2% retracement level at 0.1745 appears as a potential short-term resistance. The price remains below the 200-day moving average, signaling a longer-term bearish trend.

Backtest Hypothesis: The suggested backtesting strategy involves entering a long position upon a bullish reversal candle forming at a 61.8% Fibonacci retracement level, with a stop loss below the 38.2% level and a take profit at the nearest unbroken resistance. The current formation aligns with this strategy, as the 0.1731 reversal candle coincides with the 61.8% level. A follow-through above 0.1745 could validate the strategy and potentially trigger a retest of 0.1756–0.1762 levels. Given the bearish divergence in MACD and RSI at the end of the 24-hour period, a cautious approach is advised.