Market Overview for Yearn.Finance/Tether (YFIUSDT)

• YFIUSDT drifted lower over the last 24 hours, ending at 5193 after opening at 5166.
• A bearish momentum emerged, with RSI indicating oversold conditions.
• Volatility increased in late hours, breaking a consolidation phase.
• Volume and turnover spiked after 04:00 ET, signaling aggressive selling.
• A potential support level appears near 5135, with a 61.8% Fibonacci level nearby.

The pair Yearn.Finance/Tether (YFIUSDT) opened at 5166 at 12:00 ET−1 and closed at 5193 at 12:00 ET. The 24-hour range extended between 5084 and 5225, with a total volume of 188.3946 and a notional turnover of approximately $968,049. Price action showed a consolidation into the early hours, followed by a sharp sell-off starting around 04:00 ET, where turnover spiked and YFIUSDT dropped nearly 200 pips.

The 15-minute OHLCV data indicates a bearish pressure after a short-lived rebound from 06:00 to 09:00 ET. A long upper shadow at 05:45 ET and a bearish engulfing pattern at 15:00 ET−1 suggest continued bearish sentiment. The 20- and 50-period moving averages on the 15-minute chart are in a descending trend, aligning with the bearish bias. The 50-period MA crossed below the 100-period on the daily chart, a potential bearish signal.

MACD has been in negative territory for much of the day, confirming the bearish momentum. The RSI dipped into oversold territory around 06:15 ET, indicating the price could rebound toward 5170–5180. However, the lack of a strong bullish follow-through suggests this may not break above 5200. Bollinger Bands have widened after the sell-off, showing increased volatility, with the price settling near the lower band at 5193, indicating bearish pressure remains intact.

Fibonacci retracement levels from the 5084–5225 swing show key levels at 5170 (38.2%) and 5135 (61.8%). The price is currently hovering near 5193, which is above the 61.8% level, suggesting the next support is in sight. The volume profile highlights a sharp divergence from 04:00 to 05:00 ET, with heavy selling pressure and no matching bullish volume. This divergence increases the likelihood of a continuation of the downward trend.

Backtest Hypothesis

A potential backtest strategy involves entering short positions on a bearish engulfing pattern confirmation, with a stop-loss placed above the 5200 level. The target could be aligned with the 61.8% Fibonacci level at 5135, while a partial exit could be triggered near the 5170 level. This approach would be most effective in a trending market with strong volume divergence, as seen in the morning sell-off. Given the current setup, the strategy may be viable in the next 24 hours, but close monitoring is advised for any reversal signals.