Market Overview: Internet Computer/Tether (ICPUSDT) – 2025-10-12

• Price dropped sharply from $3.31 to $3.11 before rebounding to close near $3.38.
• Strong buying pressure emerged in the final 4 hours, with a bullish engulfing pattern at close.
• Volatility spiked during the decline but has normalized, with volume confirming the recovery.
• RSI suggests overbought conditions near the 24-hour high, hinting at potential pullback risk.
• ICPUSDT tested key Fibonacci levels on the way up, with 61.8% retracement aligning to a strong support-turned-resistance level.

The Internet Computer/Tether (ICPUSDT) pair opened at $3.304 on October 11, 2025, at 12:00 ET and fell to a low of $3.117 before staging a strong reversal. By 12:00 ET on October 12, the pair closed at $3.411, reflecting a notable rebound. Total 24-hour volume was approximately 1,072,525.07 ICP and a turnover of $3,353,877.81 (based on closing prices). The sharp decline and subsequent recovery suggest a volatile session, with strong short-covering and long-term buyers stepping in at key levels.

Structure & Formations

Price action over the 24-hour period displayed a distinct bearish breakdown followed by a strong reversal. A key support level was identified around the $3.117–$3.123 range, which held during the dip and then acted as a pivot for the upward move. A bullish engulfing pattern emerged near the close, with the final candle engulfing the previous bearish bar, signaling a potential reversal in sentiment. Additionally, a doji was observed during the decline at $3.117, indicating indecision before the recovery.

Moving Averages

On the 15-minute chart, the 20-period MA crossed above the 50-period MA during the recovery phase, confirming a short-term bullish trend. On the daily chart, the 50- and 200-period MAs were aligned bearishly earlier in the session, but the 50-period MA began to approach the 200-period MA from below, hinting at a potential trend reversal. The 100-period MA on the daily chart also acted as a dynamic support during the rebound phase.

MACD & RSI

The MACD showed a bearish divergence during the early dip but reversed to a bullish crossover during the final hours. RSI reached an oversold level near 30 during the low and then surged into overbought territory above 70 by the close. This suggests strong momentum but also warns of a potential pullback. A bearish RSI divergence could emerge if price continues to rise without momentum support.

Bollinger Bands

Volatility expanded sharply during the decline, with the bands widening and price hitting the lower band. As the rally progressed, the bands began to contract again, suggesting a period of consolidation might follow. The closing candle was near the upper band, indicating a strong move but also suggesting that the upper range might act as resistance in the near term.

Volume & Turnover

Volume spiked during the sharp decline, with the candle at $3.117 showing the highest volume in the 24-hour window. The reversal saw moderate but increasing volume, confirming the strength of the recovery. Notional turnover also spiked during the dip, with a strong increase in turnover during the final 2-hour window. This volume profile supports a short-to-medium-term bullish bias.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent bearish move from $3.31 to $3.117, the 61.8% level aligned closely with the $3.223–$3.226 area, which held as a strong support during the recovery. The 78.6% level is near $3.30 and could act as a near-term resistance. The 161.8% extension is at $3.49 and could represent a key psychological level for the next phase.

Backtest Hypothesis

The backtest strategy involves entering long positions on a bullish engulfing pattern confirmation, with a stop-loss placed below the low of the engulfing pattern and a take-profit at the 61.8% Fibonacci level. The data from the 24-hour period supports this strategy, as the engulfing pattern was confirmed and the price moved to a key Fibonacci level. This pattern has shown potential in this context, particularly when aligned with strong volume and RSI divergence. Traders may consider this as a viable entry method in similar setups, though caution is advised during overbought RSI conditions and potential volatility consolidation.