Market Overview for Loopring/Tether (LRCUSDT): Bullish Consolidation and Momentum Re-emergence

• Loopring/Tether (LRCUSDT) posted a bullish close at $0.0689 after testing a key support of $0.0685.
• Momentum accelerated post-19:00 ET with a high of $0.0690 and volume surging past 90,000 contracts.
• A bullish flag pattern formed between $0.0685 and $0.0690, suggesting continuation potential.
• Volatility expanded during the session, with Bollinger Bands widening post-22:00 ET.
• A divergence between price and volume emerged around 03:00–04:00 ET, signaling potential exhaustion.

Price Action and Daily Summary

At 12:00 ET on October 25, 2025, Loopring/Tether (LRCUSDT) opened at $0.0680 and reached a high of $0.0690 before closing at $0.0689 at 12:00 ET October 26. The session recorded a low of $0.0679 and total volume of 2.82 million contracts, with notional turnover reaching $191,600. The price action suggests a consolidation phase after a strong bullish breakout from a prior trading range.

Structure & Formations

The 24-hour candlestick pattern showed a bullish flag formation between the support of $0.0685 and the resistance at $0.0690. A key support level appears to be forming around $0.0685, with volume increasing during bounces off this level. A doji candle formed near $0.0690 at 19:00 ET, indicating potential indecision. A bullish engulfing pattern was observed at 15:00 ET, confirming a short-term reversal.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed in a bullish divergence, confirming the recent upward thrust. On the daily chart, the 50-period SMA remained below the 200-period SMA, indicating that LRCUSDT remains in a longer-term sideways trend, though short-term bullish momentum is evident.

MACD & RSI

The MACD line crossed above the signal line around 17:00 ET, suggesting a bullish turn in momentum. RSI remained between 40 and 60 for most of the day, indicating a neutral market sentiment, but surged past 60 at 19:00 ET, indicating a potential overbought condition. RSI has not shown signs of divergence with price action, which suggests the rally may still have legs.

Bollinger Bands and Volatility

Volatility expanded significantly after 22:00 ET, with Bollinger Bands widening and price moving closer to the upper band. The mid-band crossed below the 20-period SMA, indicating a bullish shift in volatility. Price remained within the Bollinger Bands for most of the session, but tested the upper boundary during the 19:00–20:00 ET window, suggesting a potential breakout scenario.

Volume and Turnover

Volume spiked after 18:00 ET, reaching over 90,000 contracts as price approached $0.0690. The increase in volume correlated with price highs, confirming the strength of the move. Notional turnover followed a similar pattern, peaking at $12,600 during the 18:45–19:00 ET window. A divergence between volume and price emerged during the 03:00–04:00 ET window, indicating potential bearish exhaustion in the prior leg down.

Fibonacci Retracements

Fibonacci retracement levels for the 15-minute swing from $0.0685 to $0.0690 showed the price consolidating near the 61.8% level at $0.0687–$0.0688. For the daily chart, the recent low to high move suggested a 38.2% retracement at $0.0686 as a critical support. Price held above these levels, indicating potential for a further test of the 61.8% retracement at $0.0691 in the next 24 hours.

Backtest Hypothesis

To validate the observed bullish momentum, a backtest using a 14-period RSI-based strategy could be implemented. Specifically, a long entry rule could be triggered when RSI crosses above 40 on the 15-minute chart, with a stop loss placed below the 20-period SMA and a target aligned with the 61.8% Fibonacci level. This approach would help quantify the potential reward-risk ratio of the current bullish setup. For accuracy, the strategy would require precise 14-period RSI data for LRCUSDT, preferably from a reliable exchange such as Binance.