Market Overview for Liquity/Tether (LQTYUSDT) – 2025-09-21

• Price fell 8.7% in 24 hours, closing at 0.892 after reaching 0.924 high mid-day.
• Key support at 0.890–0.893 held during sharp sell-offs post 06:00 ET.
• High volatility and large-volume swings suggest potential short-term range trading.
• MACD bearish divergence and RSI below 30 signal oversold conditions.
• Turnover exceeded $6.5M, reflecting heightened trading activity amid bearish sentiment.

Liquity/Tether (LQTYUSDT) opened at 0.909 on 2025-09-20 at 12:00 ET, reached a high of 0.924, a low of 0.886, and closed at 0.892 by 12:00 ET on 2025-09-21. The 24-hour volume was 1,163,786.9 with total turnover of ~$1,038,500 (assuming a constant price of ~$1 for Tether). The price action reflects a sharp sell-off following a morning consolidation.

Structure & Formations

The past 24 hours saw a bearish reversal pattern form after an initial morning rally. A strong bearish engulfing pattern emerged around 06:00–07:00 ET as price broke below the morning’s consolidation range. A double bottom at 0.890–0.893 and a descending triangle pattern suggest price could test 0.885 next. Resistance levels are visible at 0.896 and 0.900, with a major psychological level at 0.900 offering potential for a bounce or retest.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages (SMA) have diverged below price, indicating bearish momentum. On the daily timeframe, the 50-period SMA has crossed below the 200-period, suggesting a bearish bias for the longer term. Price remains below the 100-period SMA, reinforcing the bearish outlook.

MACD & RSI

The MACD line turned negative after 06:00 ET, with bearish divergence forming in the morning highs. The histogram has been shrinking on the downside, showing weakening bullish momentum. RSI fell below 30 by 12:00 ET, signaling overbought conditions in the short term and a potential for consolidation or correction.

Bollinger Bands

Volatility expanded during the sell-off between 06:00–08:00 ET, with price dropping below the lower band. Since then, volatility has slightly contracted, and price has remained near the mid-band. This suggests a period of consolidation may follow, though a break below the lower band could reinforce bearish sentiment.

Volume & Turnover

Volume spiked sharply in the early hours, particularly around 06:00 ET, coinciding with the breakdown of key support. Notional turnover rose above $6.5M during that period, reinforcing the conviction of the bearish move. Later in the day, volume and turnover declined, suggesting a potential pause in momentum. Divergence between price and volume is not yet significant, but traders should watch for signs of waning bearish conviction.

Fibonacci Retracements

Applying Fibonacci to the key swing high (0.924) and low (0.886), the 38.2% level (0.903) and 61.8% level (0.891) have shown clear price reactions. Price bounced near 0.891 (61.8%) mid-day before another decline, indicating a possible short-term support zone. On the 15-minute chart, minor retracement levels between 0.892 and 0.896 could see renewed attention in the next 24 hours.

Backtest Hypothesis

Given the recent bearish structure and oversold RSI levels, a potential short-term reversal trade could be considered. A backtesting strategy might involve entering long near the 61.8% Fibonacci level (0.891) with a stop below 0.885 and a target at 0.896–0.900. Alternatively, a short bias could be initiated with a stop above 0.900 and a target at 0.880. This setup aligns with the observed price reaction at key Fib levels and could be refined with volume and MACD confirmation.