Market Overview: Liquity/Tether (LQTYUSDT) – 24-Hour Technical Breakdown

• Liquity/Tether (LQTYUSDT) declined by 0.75 to 0.704, posting a 24-hour low of 0.689 with rising bearish momentum.
• Strong volume expansion occurred during the selloff, particularly after 02:00 ET, as price dropped below 0.71.
• RSI entered oversold territory near 28, while MACD remained negative, indicating potential for further downward correction.
• Bollinger Bands widened significantly during the sell-off, highlighting increased volatility in the last 6 hours.
• Notable breakdown occurred at 0.71, confirmed by a bearish engulfing pattern and high-volume rejection above 0.72.

24-Hour Summary

Liquity/Tether (LQTYUSDT) opened at 0.744 on 2025-09-24 at 12:00 ET, reaching a high of 0.76 before closing at 0.704 at 12:00 ET on 2025-09-25. Total volume for the 24-hour window was 1,192,873.45, while total turnover amounted to 808.96. The pair experienced a significant bearish move, with price collapsing below key support levels after 02:00 ET, accompanied by strong volume.

Structure & Formations

Price action revealed a bearish engulfing pattern around 02:00 ET as LQTYUSDT broke below the 0.71 level on strong volume. A key support level at 0.71 was tested multiple times and failed to hold, suggesting further weakness. A doji formed near 0.706, indicating temporary indecision but not enough to reverse the trend. The most critical resistance is now at 0.71, with a failed rally to 0.72 suggesting bears have control for now. A breakdown below 0.689 could open the door to 0.675.

Moving Averages

On the 15-minute chart, price closed below both the 20-period and 50-period moving averages, reinforcing the bearish sentiment. The 50-period line is currently at 0.703, closely aligning with recent support levels. Longer-term, the 200-day moving average is at approximately 0.725, now acting as a psychological resistance. Price failing to reclaim this level could prolong the downtrend.

MACD & RSI

The 15-minute RSI has dipped into oversold territory, reaching a low of 28, which could imply a short-term bounce from 0.69–0.70. However, the MACD remains in negative territory with a bearish crossover confirmed after 02:00 ET. The MACD histogram has been expanding downward, suggesting ongoing bearish momentum. RSI divergence is not present, indicating that the move lower is likely supported by fundamentals.

Bollinger Bands

Bollinger Bands widened significantly during the selloff between 02:00 and 04:00 ET, signaling a rise in volatility. Price has remained below the lower band for the past 8 hours, suggesting continuation of the bearish move. A bounce toward the mid-band (0.69–0.70) may occur, but a close above the upper band is unlikely without a reversal above 0.72.

Volume & Turnover

Volume spiked during the breakdown at 0.71 and again at 0.689, confirming bearish control. Notional turnover also rose during the decline, indicating strong participation. However, recent volume during the consolidation phase has been lower, which may suggest exhaustion at current levels. A significant increase in buying volume would be needed to confirm a reversal.

Fibonacci Retracements

Applying Fibonacci retracement to the recent 0.689–0.76 swing, the 61.8% level is at 0.717, where price stalled briefly. The 38.2% level is at 0.726, which has now become a key resistance. A break above 0.726 would challenge the 61.8% level at 0.737, but for now, the 0.71 level remains crucial. The 50% level at 0.725 is also relevant as it aligns with the 200-day MA.

Backtest Hypothesis

Given the current bearish setup and key Fibonacci levels, a backtest strategy could be designed to sell on a breakdown of 0.71 with a stop above 0.725 and a target to 0.685–0.675. This setup is supported by the MACD divergence and volume confirmation during the breakdown. A long entry could be considered on a clean close above 0.725 with a stop below 0.71 and a target to 0.735. The RSI’s oversold condition suggests limited short-term bounce potential, but a reversal may only be confirmed with strong volume and closing above 0.726.