Market Overview for dYdX/Tether (DYDXUSDT) on 2025-09-25

• dYdX/Tether (DYDXUSDT) traded in a downward trend over the last 24 hours, with price dropping from ~0.6381 to ~0.5870.
• Key resistance appeared near 0.630–0.635 while support levels consolidated below 0.620 and 0.590.
• Volatility increased significantly, especially after 02:00 ET, with several large-volume candles driving the move lower.
• RSI showed overbought conditions early, followed by a sharp sell-off into oversold territory, indicating exhausted momentum and bearish sentiment.

Opening at 0.6381 at 12:00 ET–1 on 2025-09-24, dYdX/Tether (DYDXUSDT) closed at 0.5870 at 12:00 ET on 2025-09-25. The 24-hour range was 0.6386 (high) to 0.5785 (low), with a notable bearish bias. Total volume reached ~32.3 million contracts, and notional turnover exceeded $19.9 million, with the bulk of activity occurring between 02:00 and 04:00 ET when price collapsed below key support levels.

Structure & Formations

Price action over the past 24 hours revealed a bearish breakdown pattern. After a brief attempt to rally in the early hours of the morning, the asset broke below key support levels near 0.630–0.625 and accelerated downward. A long bearish candle at 23:30 ET–1 (0.6243 → 0.6206) signaled weakening demand. Later, a large bearish engulfing pattern appeared between 00:30 and 00:45 ET, confirming the breakdown. A doji at 02:45 ET suggested brief indecision but was quickly followed by renewed selling pressure.

Moving Averages and Momentum Indicators

Using 15-minute EMA(20) and EMA(50), price broke below both and remained well below them for the remainder of the 24-hour window. The 12-period MACD line crossed below the signal line early on, with a bearish divergence forming. The RSI dropped from overbought levels (~65) to oversold (~25), suggesting a potential short-term rebound. However, given the depth of the selloff, a reversal may require a strong bullish catalyst.

Bollinger Bands and Volatility

Bollinger Bands expanded significantly in the early morning, with the price breaking below the lower band at ~0.620. This expansion indicated rising volatility. As the session progressed, the bands began to contract slightly, suggesting some consolidation. Price has remained near the lower band since 02:00 ET, indicating bearish dominance. A break above the middle band would be a positive signal, but for now, the bearish bias remains intact.

Volume and Turnover

Volume surged during the critical breakdown at ~02:00–04:00 ET, particularly at 02:45 ET where a large-volume candle confirmed the downward move. Notional turnover spiked to over $1.2 million on the hour, aligning with the sharp price drop. However, volume began to dry up after 04:00 ET, suggesting the selloff may be losing steam. Price and turnover remained in alignment throughout the session, with no major divergence observed.

Fibonacci Retracements

Applying Fibonacci to the 03:30–06:00 ET–1 swing (high 0.6089 → low 0.5968), the 61.8% level (~0.5982) provided temporary support before the asset continued lower. On the daily chart, the 50% retracement of the 09/24 high–low (~0.6336) was tested at ~0.620, but failed to hold. The next key Fibonacci level to watch is the 78.6% retracement at ~0.575, which could trigger further bearish extension if broken.

Backtest Hypothesis

Given the observed breakdown pattern and oversold RSI conditions, a potential short-term bounce is possible. A backtest strategy might involve a long entry near the 0.5870 level if it acts as support, with a stop below the 0.5850 level. A target could be the 0.5930–0.5950 area, based on the previous 38.2% Fibonacci retracement and early morning consolidation. This approach would aim to capture a reversal in momentum while managing risk with a tight stop loss.