Market Overview for Liquity/Tether (LQTYUSDT): Volatility and Key Support Tested

• LQTY/USDT fell to a 24-hour low of 0.482 before rallying to close near 0.518, showing intraday volatility.
• A notable bearish breakdown followed by a bullish rebound occurred around 0.50–0.51, suggesting key support.
• Volume spiked during the recovery phase, indicating potential buying interest.
• RSI briefly entered oversold territory, hinting at a potential rebound.
• Bollinger Bands widened during the selloff, signaling increased volatility.

Liquity/Tether (LQTYUSDT) opened at 0.518 on 2025-10-11 12:00 ET and traded between 0.482 and 0.553, closing at 0.552 at 2025-10-12 12:00 ET. Total volume reached 1.41M, with a turnover of ~708,500 USDT in 24 hours. The pair experienced a sharp decline early on, followed by a strong rebound driven by increased volume and bullish momentum.

Structure & Formations

The price action revealed multiple key levels and candlestick formations. A strong bearish breakdown occurred around 0.50–0.51, with a long bearish candle closing near its low. This was followed by a bullish engulfing pattern as prices rebounded above 0.518, suggesting a short-term reversal. A doji candle appeared near 0.515, indicating indecision at this level. Key support levels include 0.50–0.51, 0.49–0.50, and 0.48–0.49, while resistance levels are forming at 0.52–0.53 and 0.54–0.55.

Moving Averages and MACD/RSI

On the 15-minute chart, the 20 and 50-period moving averages crossed lower into a bearish alignment during the morning selloff but diverged positively in the afternoon as the price rebounded. The MACD histogram showed a negative divergence early in the session before turning positive, confirming the bullish turn. RSI bottomed out near 30 in the early hours, entering oversold territory, which may have triggered a corrective rally.

Bollinger Bands and Volatility

Bollinger Bands expanded significantly during the selloff, with price dropping below the lower band and staying there for several hours. This contraction suggests a period of high volatility and possible consolidation. By the afternoon, price re-entered the band range, indicating a return to more typical volatility levels. The widening and subsequent narrowing of the bands suggest a possible topping or bottoming process.

Volume and Turnover Analysis

Volume spiked during the selloff but remained elevated during the recovery, with the largest turnover occurring after the price crossed above 0.518. A divergence in volume and price was observed in the early hours, where price declined but volume was relatively low, indicating a weak bearish signal. This was followed by a sharp increase in volume with a corresponding upward price move, suggesting a reversal of bearish momentum.

Fibonacci Retracements

Applying Fibonacci retracements to the major 15-minute swing from 0.553 to 0.482 showed the price rebounding near the 61.8% retracement level at 0.524. This level appears to have acted as a strong support, with the price bouncing off it and extending above it later in the session. On the daily chart, the 38.2% and 61.8% retracement levels at 0.502 and 0.536 respectively are now key targets for the next 24 hours.

Backtest Hypothesis

The described backtest strategy aligns with the price action observed today, particularly the strong rebound from the 0.518 level and the elevated volume during the reversal. A potential strategy could involve entering long positions near the 0.50–0.51 support zone with a stop loss below the 0.48–0.49 level. A take profit target might be placed at 0.524 and 0.546 based on the Fibonacci retracement levels and the morning highs. This approach would require careful risk management, as the volatility and divergence observed earlier in the day suggest the market may remain unpredictable.