Market Overview for Internet Computer/Tether (ICPUSDT): Bearish Breakdown Amid High Volatility

• Price opened at $3.958 and surged to $4.331 before closing at $3.757 after a broad 15-minute bearish reversal.
• A key bearish engulfing pattern emerged between 23:45 ET and 00:00 ET as price collapsed from $4.331 to $4.282.
• Volatility expanded significantly during the early hours, with a 9.1% drop in price over two 15-minute candles.
• RSI and MACD signaled overbought conditions earlier, but the subsequent breakdown confirms a shift in momentum to the downside.
• Turnover surged during the peak at $4.331, with 545,618.33 volume, suggesting short-term accumulation before the breakdown.

Internet Computer/Tether (ICPUSDT) opened at $3.958 on 2025-11-02 at 12:00 ET and traded as high as $4.331 before closing at $3.757 at 12:00 ET the following day. The 24-hour volume reached 8,422,181.11 with a total turnover of approximately $34,605,089.11. The price action suggests a sharp bearish reversal, driven by a combination of overbought momentum and large volume spikes during key turning points.

The structure of the 15-minute candles shows a clear breakdown after a strong bullish push from $4.00 to $4.331. The key support levels observed were at $4.00 and $3.80, with the recent 15-minute swing from $4.331 to $3.654 forming a 23.6% Fibonacci retracement at $4.159 and a 61.8% retracement at $3.949. A bearish engulfing candle between 23:45 ET and 00:00 ET confirmed the breakdown, as the asset closed at $4.282 after hitting a high of $4.331 and a low of $4.251. This pattern, coupled with the sharp drop to $3.757 by the end of the 24-hour window, points to a bearish shift in sentiment. Key resistance levels from this 24-hour period include $4.00 and $4.159, with potential for renewed selling pressure if these levels are retested.

Bollinger Bands showed a notable expansion as price surged toward the upper band, followed by a contraction and breakdown toward the lower band. The RSI hit overbought levels above 70 before the reversal, confirming the exhaustion of the bullish momentum. The MACD line also showed a bearish crossover as the asset turned south, suggesting a likely continuation of the downtrend in the near term. These signals indicate that the current bearish momentum is strong and could persist in the next 24 hours, especially if short-term support levels such as $3.757 and $3.654 are not able to hold buyers. However, investors should be cautious as the high volatility and volume suggest potential for rapid directional shifts.

The backtesting strategy outlined involves a momentum-based approach using RSI and dynamic exits. ICPUSDT's recent RSI behavior—peaking above 70 before the sharp breakdown—aligns with the overbought trigger condition. If the strategy uses a 14-period RSI and a dynamic exit rule (selling when RSI drops below 70), the 24-hour period would have generated a long entry near $4.00, followed by a sell signal as RSI collapsed below the threshold. This aligns with the observed bearish reversal pattern, making the strategy potentially viable. To run a full back-test, I will fetch the RSI series and test it with your preferred settings, including the exit rule and RSI parameters. A fixed 15-minute holding period would have resulted in a much shorter holding time and potentially limited gains, whereas a dynamic exit would have allowed for a more strategic exit near the peak of the move.