Market Overview for DIA/Tether (DIAUSDT) on 2025-09-21

• DIA/Tether traded lower on heavy volume, with a bearish breakdown below key support levels.
• Volatility expanded sharply in the second half of the day, with price falling to a 24-hour low.
• MACD and RSI confirmed bearish momentum, with RSI reaching oversold territory.
• Bollinger Bands widened, signaling increased risk and potential for a bounce or further decline.
• Fibonacci levels suggest 0.6849 and 0.6724 as critical psychological support levels ahead.

DIA/Tether (DIAUSDT) opened at 0.7082 on September 20 at 12:00 ET and closed at 0.6743 on September 21 at 12:00 ET, with a 24-hour high of 0.7116 and a low of 0.6724. The pair experienced a significant decline over the period, driven by heavy volume of 268,000.6 trading units and a total turnover of 184,245.9 USD, reflecting strong bearish pressure.

Structure & Formations

The price action formed a clear bearish breakdown below a critical support level of 0.7052, confirmed by a strong bearish engulfing pattern. This triggered a wave of selling pressure and pushed the price toward the 0.6849 Fibonacci retracement level from the recent high. A long-legged doji appeared near 0.6749, indicating potential short-term exhaustion in the selloff, though bearish momentum remains dominant.

Moving Averages

On the 15-minute chart, price closed below both the 20-period and 50-period moving averages, confirming a short-term downtrend. The 50-period MA crossed below the 20-period MA, forming a death cross signal. Daily moving averages (50, 100, 200) all remain below the current price, reinforcing the bearish bias and suggesting continued pressure in the near term.

MACD & RSI

The MACD crossed below the signal line, confirming bearish momentum with a wide histogram reflecting strong divergence in selling. RSI fell into oversold territory below 30, indicating that the price could retest key supports or potentially bounce. A reversal in the RSI could signal a temporary pause in the bearish trend, but a break below 0.6724 would suggest further downside risk.

Bollinger Bands

Bollinger Bands expanded significantly during the selloff, with price closing near the lower band, indicating heightened volatility and potential for a bounce or continuation of the bearish trend. The width of the bands suggests that the market is in a phase of high uncertainty, with the potential for either a rebound or a sharp continuation to the downside.

Volume & Turnover

Volume surged sharply in the early morning hours, with a massive 168,136.8 trading units at 15:15 ET. This coincided with a sharp price drop from 0.6849 to 0.6749, indicating a significant sell-off. Notional turnover followed the same trend, confirming the bearish price action. The divergence between the high volume and the continued decline suggests strong bearish conviction among traders.

Fibonacci Retracements

Key Fibonacci levels from the 0.7116 high and 0.6724 low suggest that DIA/Tether could face support at 0.6849 (38.2%) and 0.6724 (100%). A breakdown below 0.6724 would target the next major level at 0.6695. The 0.6911 (61.8%) level may offer resistance if the pair experiences a short-term bounce.

Backtest Hypothesis

A potential backtest strategy would involve a short position triggered by a breakdown below the 0.7052 support level, confirmed by a bearish engulfing pattern and a MACD crossover below the signal line. Stops could be placed just above the 0.7084 level, with initial targets at 0.6849 and 0.6724. This strategy is supported by the strong bearish bias in RSI, Bollinger Band expansion, and high volume at key levels. A trailing stop could be implemented once the price reaches 0.6849 to capture further downside if conditions remain bearish.