Market Overview for Yearn.Finance/Tether (YFIUSDT) – 2025-10-11

• YFIUSDT fell sharply from $5243 to $4380 before stabilizing around $4730–4760.
• Volatility expanded early in the session, followed by a contraction into tighter ranges.
• RSI and MACD suggest bearish momentum has weakened, with potential for a short-term bounce.
• Volume spiked during the selloff but has since declined, showing reduced conviction in price action.
• Key support and resistance levels appear to be forming near 4700 and 4800.

The yearn.finance/Tether (YFIUSDT) pair opened at $5163 on 2025-10-10 12:00 ET and closed at $4736 as of 2025-10-11 12:00 ET, with a high of $5243 and a low of $3900. Total volume over the 24-hour period was 1,140.6985 YFI, with a notional turnover of approximately $5,330,336 USD. The session saw a sharp selloff followed by a consolidation phase around the $4700–4760 range.

Structure & Formations

Price action formed multiple key levels during the session. A bearish engulfing pattern was observed around $5190–5171, signaling a potential reversal from a bullish bias. A large bear trap occurred as prices surged to $5243 before plunging to $4380, creating a broad bearish flag. The consolidation phase from $4600–4800 suggests a potential support zone forming at $4700 and a resistance zone at $4800. A bullish hammer formed near $4613–4651 in the 04:00–05:00 ET timeframe, indicating a possible short-term bounce.

Moving Averages, MACD, and RSI

On the 15-minute chart, the 20-period and 50-period SMAs crossed to the downside during the selloff, confirming bearish momentum. However, the 50-period SMA has begun to flatten, while the 20-period SMA shows early signs of curving back up, hinting at a potential reversal. The MACD line crossed below the signal line during the selloff but has since flattened and is approaching a potential bullish crossover. RSI has moved out of oversold territory, suggesting that bearish momentum is waning and there may be a short-term bounce in the near term.

Bollinger Bands and Volume

Bollinger Bands showed significant expansion during the selloff phase as prices dropped from $5243 to $4380, indicating heightened volatility. In the final 6 hours of the session, bands contracted, suggesting reduced volatility and potential consolidation. Price has been trading near the lower band but has not broken it decisively, indicating support. Volume spiked during the selloff but has since declined, suggesting reduced conviction in the downward move.

Fibonacci Retracements

Applying Fibonacci levels to the recent 15-minute swing from $5243 to $4380, key retracement levels at 38.2% ($4939) and 61.8% ($4617) align with the consolidation phase currently forming between $4700–4760. The daily move from $5163 to $4380 shows a similar structure, with retracement levels at $4868 and $4617. The 61.8% level appears to be holding as support, and a breakout above $4800 could indicate a test of the 38.2% level next.

Backtest Hypothesis

A potential backtesting strategy could involve a combination of RSI divergence and Fibonacci retracement levels to identify reversal opportunities. For example, when RSI shows a bullish divergence while price is testing a key 61.8% retracement level, this could serve as a buy signal. Entry could be placed near the 61.8% level with a stop-loss below the last confirmed support. This strategy would be tested on the 15-minute chart using the most recent swing from $5243 to $4380 as the baseline. Given the recent flattening of the 20-period SMA and the bearish engulfing pattern, a short-term bounce appears likely.