Market Overview for IQ/Tether on 2025-12-31

Summary
• Price formed a bullish engulfing pattern near 0.001543 after a mid-session consolidation.
• RSI and MACD signaled fading momentum during the afternoon before a late rally.
• Volume surged in the final 4 hours, confirming strength in the 0.001543–0.001548 range.
• Bollinger Bands contracted in the morning before a sharp price rebound.

At 12:00 ET–1, IQ/Tether (IQUSDT) opened at 0.001543, reaching a high of 0.001551 and a low of 0.001536 before closing at 0.001549 at 12:00 ET. Total volume reached 9.32 million, with notional turnover of 14,400.49.

Structure & Formations

A bullish engulfing pattern emerged in the 5-minute chart around 0.001543, confirming strength after a bearish consolidation phase. Key support was tested at 0.001539 and held, while resistance appeared at 0.001548, with a failed breakout in the early morning. A doji formed near 0.001538 at 21:15 ET, signaling indecision before a late rally.

Moving Averages and Momentum

The 20- and 50-period moving averages on the 5-minute chart crossed into bullish territory late in the session. RSI briefly entered overbought territory (above 65) as the price pushed to 0.001551, but momentum appeared to wane during the mid-session dip. MACD showed a positive divergence late in the session, confirming the bullish breakout attempt.

Volatility and Bollinger Bands

Bollinger Bands contracted during the morning hours, indicating low volatility, followed by a sharp price expansion after 04:00 ET as the price moved above the upper band. The closing candle at 0.001549 was near the upper band, suggesting heightened bullish pressure.

Volume and Turnover

Volume surged to 3.75 million in the 4:45 AM to 5:45 AM window, coinciding with a breakout to 0.001551. Turnover spiked from $989 to $3,186 during this period, confirming strength in the rally. A divergence between price and turnover was noted during the mid-session dip, where low turnover supported the bearish pullback.

Fibonacci Retracements

A key 61.8% Fibonacci retracement level at 0.001545 was tested twice and held, acting as a dynamic support. A 38.2% retracement at 0.001543 also showed strong buying interest, especially in the late hours of the session.

In the next 24 hours, IQUSDT may test the 0.001551–0.001555 range, with a risk of a pullback to 0.001538 if volume wanes. Investors should monitor volume divergence and RSI for signs of exhaustion.