Market Overview for Loopring/Tether (LRCUSDT)

• Price fell 3.8% in 24 hours, closing near a key support level
• High volatility and declining momentum signal bearish continuation
• Strong volume spikes and price divergence suggest potential short-term reversal
• RSI in oversold territory, indicating possible bounce from 0.0804–0.0817

Loopring/Tether (LRCUSDT) opened at 0.0864 on 2025-09-24 12:00 ET and closed at 0.0817 on 2025-09-25 12:00 ET, with a high of 0.0871 and low of 0.0804. The total volume over the 24-hour period was 5,956,360 and the notional turnover was 503.75 (USD equivalent based on amounts). The price action showed a strong downward trend with a potential reversal pattern developing.

Structure & Formations

The price of LRCUSDT broke below a key support level at 0.0846 and has been consolidating near 0.0817. A strong bearish engulfing pattern formed during the late ET hours, signaling further downward momentum. A potential bullish reversal pattern began to form after the price hit the 0.0804 level, suggesting a short-term bounce may be in play. The 0.0822–0.0827 range appears to be a key area for possible support/resistance retesting in the near term.

Moving Averages

On the 15-minute chart, the 20-period MA crossed below the 50-period MA, confirming a short-term bearish bias. The daily chart shows the 50-period MA above the 100- and 200-period MAs, indicating a medium-term bearish trend. The 50-period MA is acting as dynamic resistance, currently at 0.0841, with price well below it, suggesting bearish continuation is likely in the coming days.

MACD & RSI

The MACD has been negative for most of the session, with a bearish crossover forming late in the trading window. The RSI has fallen below 30 and is now in oversold territory at 28.8, indicating the price could see a near-term bounce. However, the divergence between price and RSI suggests that any rebound may be short-lived, and the bearish trend is likely to continue after a brief consolidation.

Bollinger Bands

Volatility increased significantly as the price dropped toward the lower Bollinger Band, with the bands expanding during the late ET hours. The price closed near the lower band, indicating oversold conditions and potential for a retracement. However, the expanding bands suggest that any bounce could be volatile and short-lived.

Volume & Turnover

Volume spiked to over 600,000 at 12:30 ET as the price approached 0.0807, indicating increased selling pressure at the lows. Turnover also spiked during this period, confirming the bearish action. However, as the price recovered slightly to 0.0824 by the end of the session, volume dropped, suggesting weak conviction among buyers. Price and turnover appear to be diverging slightly, hinting at a potential reversal.

Fibonacci Retracements

Applying Fibonacci retracement to the recent swing high of 0.0871 and low of 0.0804, the key levels are 0.0856 (38.2%) and 0.0834 (61.8%). The price briefly tested the 38.2% level before resuming its decline. The 61.8% level appears to be a potential area for near-term support. On the daily chart, the 0.0846 level is a critical 61.8% retracement from the recent larger move, and a close above it would suggest a shift in trend.

Backtest Hypothesis

A potential backtest strategy could involve entering a short position when the 20-period MA crosses below the 50-period MA on the 15-minute chart, confirming a bearish bias, and adding stop-loss protection just above the 0.0831–0.0832 resistance level. A long entry could be triggered if the price closes above the 61.8% Fibonacci level at 0.0834, with a target of 0.0846 and a stop below 0.0822. This strategy leverages both moving average crossovers and Fibonacci levels to capture trend continuation or reversals, while ensuring risk is limited through clear stop and target levels.