Market Overview for dYdX/Tether (DYDXUSDT)

Summary
• Price formed a bearish engulfing pattern at 0.2024, suggesting potential short-term weakness.
• Key support at 0.1974 was tested twice, showing initial resilience but with limited buying follow-through.
• RSI entered oversold territory near 0.1945, hinting at possible near-term reversal.
• Volatility expanded after 19:00 ET with a low of 0.1972 and volume surged to 209,022.
• Bollinger Bands showed a contraction prior to a sharp selloff, indicating a possible breakout scenario.

dYdX/Tether (DYDXUSDT) opened at 0.2018 on 2026-01-04 12:00 ET, reached a high of 0.2030, and a low of 0.1922, closing at 0.1935 by 12:00 ET on 2026-01-05. Total volume was 3,614,354.91 and turnover was 706,328.50 USDT over the 24-hour window.

Structure & Formations

A bearish engulfing pattern developed at 0.2024, suggesting short-term bearish momentum. A double test of support at 0.1974 revealed some resilience, though follow-through buying was weak. A potential bullish reversal candle emerged near 0.1945 with a long lower shadow and tight range.

Moving Averages

The price fell below both 20-period and 50-period moving averages on the 5-minute chart, reinforcing a bearish bias. On the daily chart, it drifted below the 50-period line and hovered near the 100-period average, indicating mixed signals.

Momentum & RSI

RSI hit oversold territory at 0.1945 but failed to generate a strong rebound, pointing to exhaustion in the downside. MACD turned bearish after a bearish crossover in the 19:00–20:00 ET window, with negative divergence observed in later hours.

Volatility & Bollinger Bands

Volatility expanded sharply after 19:00 ET, with a contraction observed just before the selloff. Price moved well below the lower Bollinger Band between 0.1945 and 0.1922, suggesting heightened bearish pressure and potential for a retest of key levels.

Volume & Turnover

Volume spiked to 209,022 at 21:45 ET during a sharp drop to 0.1966, confirming bearish momentum. Turnover rose in tandem with price declines, but failed to spike during the bullish rebound near 0.1945, signaling weak conviction in the upside.

Fibonacci Retracements

The 0.1974–0.2030 swing saw a 61.8% retracement at 0.1995, which held briefly as a resistance level. On the daily chart, 0.2014 (38.2%) and 0.1978 (61.8%) levels were tested during consolidation phases.

Looking ahead, price may test the 0.1930–0.1940 range for a possible bounce, but a break below 0.1922 could accelerate the decline. Investors should remain cautious as volatility remains high and divergences persist in momentum indicators.