Market Overview for dYdX/Tether USDt (DYDXUSDT) – 2025-09-06

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• dYdX/Tether USDt opened at $0.5924 and closed at $0.5930, forming a bullish pattern after a consolidation phase.
• Price hit a high of $0.6075 and a low of $0.5912, indicating high volatility and potential breakout scenarios.
• RSI suggests a re-entry into overbought territory, while volume remains elevated on bullish moves.
• Bollinger Bands show moderate expansion, with price hovering near the upper band during late-night buying.
• Notional turnover reached $17.3M, aligning with price strength on key upswings.

dYdX/Tether USDt (DYDXUSDT) opened at $0.5924 on 2025-09-05 at 12:00 ET, reached a high of $0.6075, fell to a low of $0.5912, and closed at $0.5930 on 2025-09-06 at 12:00 ET. The pair traded with a 24-hour volume of ~3.05 million contracts and a notional turnover of ~$17.3 million.

Structure & Formations

Price action over the 24-hour period revealed a strong consolidation phase followed by a sharp bullish breakout. A key support zone formed between $0.5912 and $0.5924, which held on multiple retests before a sustained move higher. A bullish engulfing pattern emerged at the start of the breakout, confirming renewed buying pressure. A large bullish candle with a long lower wick on the 03:15–03:30 ET time frame marked a key turning point. A bearish rejection off $0.6075 also suggests resistance may cap near-term gains.

Moving Averages

On the 15-minute chart, the 20SMA crossed above the 50SMA early in the morning, signaling a short-term bullish bias. Daily moving averages show the 50DMA above the 200DMA, indicating a longer-term bullish trend. The price currently sits above both the 50DMA and 200DMA on the daily chart.

MACD & RSI

The 15-minute MACD crossed into positive territory and maintained a strong bullish divergence with price during the late-night rally. RSI peaked above 70 during the breakout, indicating overbought conditions. While this may suggest a pullback is imminent, the strong volume and bullish momentum could allow for a continuation above $0.6075.

Bollinger Bands expanded during the bullish phase, with price reaching the upper band multiple times before finding support. A narrowing of the bands in the morning preceded the breakout, indicating a potential resumption of volatility.

Volume & Turnover

Volume spiked during the breakout phase, particularly between 20:45–03:45 ET, when large bullish candles and high notional turnover confirmed strong buying pressure. A divergence appeared during the bearish rejection off $0.6075, where volume dropped despite a price pullback, suggesting a possible false break.

Fibonacci Retracements

Fibonacci retracements applied to the key swing low ($0.5912) and swing high ($0.6075) show that the current close at $0.5930 is near the 38.2% retracement level. A break above $0.6075 could see a test of the 76.4% level at $0.6076. A breakdown below $0.5912 would target the 61.8% level at $0.5936 as near-term support.

Backtest Hypothesis

Given the strong bullish engulfing pattern and the retest of key support levels, a backtesting strategy might involve entering long positions on the close of a bullish engulfing pattern followed by a 1.5% stop loss and a target aligned with the 38.2% and 61.8% Fibonacci levels. The strategy would close the position after 48 hours or upon reaching the target. This approach would aim to capitalize on short-term momentum while managing risk through tight stops and clear exit rules.