Market Overview for Loopring/Tether (LRCUSDT) as of 2025-10-04 12:00 ET

• Loopring/Tether (LRCUSDT) declined by -1.88% in 24 hours, closing near a key support level.
• Volume increased in early morning ET, but turnover failed to confirm bearish momentum.
• A bearish engulfing pattern and MACD bearish crossover signal potential for further downside.
• Price remained within a moderate volatility range, with Bollinger Bands tightening toward close.
• RSI showed oversold conditions late, hinting at potential near-term consolidation.

The pair opened at $0.0896 on 2025-10-03 12:00 ET and traded to a high of $0.0920 before settling at $0.0888 as of 2025-10-04 12:00 ET. Total volume reached 7.4 million LRC, with a notional turnover of $647,000. The price closed below the 50-period moving average, signaling bearish momentum.

Structure & Formations

The 24-hour period saw a bearish engulfing pattern form in the early morning hours, confirming a shift in sentiment after a brief bullish breakout. Key support levels are now at $0.0888 and $0.0881, with resistance forming at $0.0893 and $0.0900. A doji formed near the 1 AM ET timeframe, suggesting indecision and potential consolidation.

Moving Averages

On the 15-minute chart, the 20-period MA (0.0906) and 50-period MA (0.0903) are in a bearish crossover, reinforcing the downward trend. On the daily chart, the 50-period MA is currently above the 100-period and 200-period MAs, indicating medium-term bearish pressure.

MACD & RSI

MACD turned negative during the bearish breakout, with the signal line crossing below zero. RSI dropped into the oversold territory (<30) by late morning, indicating a potential pullback. However, divergence between RSI and price action suggests caution in interpreting oversold conditions as a strong buy signal.

Bollinger Bands

Volatility remained moderate, with the bands narrowing slightly in the last six hours. Price action closed near the lower band, suggesting a high probability of a bounce or continuation of the downtrend depending on the volume profile and momentum.

Volume & Turnover

Volume spiked to 887,532 LRC at 1:45 AM ET, but notional turnover did not confirm the strength of the bearish move, suggesting weaker conviction. A divergence between volume and price emerged in the final 4 hours, indicating potential exhaustion of the short-term bearish move.

Fibonacci Retracements

On the 15-minute chart, price action retested the 38.2% retracement level ($0.0896) before breaking down to the 61.8% level ($0.0886), confirming bearish continuation. Daily Fibonacci levels show the 61.8% retracement at $0.0889, aligning with recent support.

Backtest Hypothesis

A backtest strategy could be constructed based on the bearish engulfing pattern and the 20/50 MA crossover observed in the 15-minute chart. Traders could consider a short position at the open of the candle following the engulfing pattern, with a stop-loss placed just above the recent high of $0.0900 and a take-profit at the next support level of $0.0881. This approach would leverage the confluence of momentum indicators and key Fibonacci levels to improve risk-reward ratios.