Market Overview for MultiversX/Tether (EGLDUSDT): Volatility and Key Support Testing

Summary
• Price dropped from $8.74 to $8.32 amid bearish volume spikes.
• Key support held near $8.32, triggering a rebound to $8.61.
• RSI and MACD show bearish momentum, but a reversal signal is emerging.

MultiversX/Tether (EGLDUSDT) opened at $8.64 on 2025-11-03 12:00 ET, reached a high of $8.74, and a low of $8.32, closing at $8.42 by 2025-11-04 12:00 ET. The 24-hour volume was 137,977.21, with a notional turnover of $1,135,596.76.

Structure & Formations

The price tested key support at $8.32, forming a bullish reversal pattern following a bearish fast drop. A morning session decline was met with a late-day bounce, suggesting renewed buying interest at the lower end of the range. A morning 15-minute doji at $8.33 also indicated indecision, while the candlestick at $8.35 to $8.37 showed a bullish engulfing pattern, supporting a short-term reversal.

Moving Averages

On the 15-minute chart, the 20-period SMA crossed below the 50-period SMA, reinforcing the bearish trend. However, on the daily chart, the 50-period SMA is flattening near $8.48, suggesting potential for a consolidation phase if the 200-day SMA at $8.30 holds.

MACD & RSI

The MACD line dipped below the signal line in the morning, confirming bearish momentum, but a divergence appeared by late afternoon as price hit a 24-hour low without a corresponding RSI low. The RSI hit oversold territory (below 30) during the $8.32 low, suggesting potential for a bounce. This divergence points to possible short-term reversal.

Bollinger Bands

Price reached the lower Bollinger band at $8.32, where it found support before rebounding. The 15-minute band width has widened during the decline, indicating increased volatility. The price currently sits just below the midline of the daily bands, suggesting continued sideways action is likely unless a breakout occurs.

Volume & Turnover

Volume spiked during the bearish leg from $8.74 to $8.32, especially in the 5:45 AM–6:00 AM ET timeframe. Notional turnover also saw a significant increase during the same period. However, volume has moderated during the rebound, indicating that buyers are stepping in but with caution. This moderation in volume during the rally could suggest a lack of conviction, but the pattern remains bearish with a reversal signal.

Fibonacci Retracements

Fibonacci retracements on the $8.74–$8.32 swing identified key levels at 61.8% ($8.46) and 38.2% ($8.59). The current price is near the 61.8% retracement level, which may act as a potential turning point. If buyers manage to push past $8.59, it could indicate stronger bullish momentum.

Backtest Hypothesis

To validate the reversal signal observed in the technical indicators, a backtesting strategy could be implemented using a RSI-based entry rule. A typical setup would involve entering long positions when the RSI crosses above 30 (oversold) with volume confirmation. Given the current oversold RSI and bullish candlestick patterns, a potential long entry could be made. A 14-period RSI would align well with the 15-minute timeframe used here. To manage risk, an initial stop-loss could be placed just below the last swing low, and a take-profit could be set near the 61.8% Fibonacci level. The backtest would ideally confirm whether such signals would have produced positive returns during similar price patterns in the past.