1inch/Tether Market Overview

• Price tested key resistance at 0.2500–0.2505 before consolidating.
• Volatility expanded during midday trading, with a 1.5% range between 0.2480–0.2525.
• RSI hovered near overbought (70) but failed to break above 72, suggesting stalled momentum.
• Volume surged near 0.2500–0.2515, confirming short-term consolidation and potential reversal.
• A bullish engulfing pattern formed during early morning hours, suggesting a possible short-term bounce.

The 1inch/Tether (1INCHUSDT) pair opened at 0.2464 on October 9 at 16:00 ET, reached a high of 0.2554, and closed at 0.2432 by October 10 at 16:00 ET. The 24-hour trading period recorded a total volume of approximately 7,448,795.5 and a notional turnover of roughly $1,879,076.00.

Structure & Formations

Price action over the last 24 hours displayed a strong resistance cluster between 0.2500–0.2505, which was tested multiple times but only partially broken. A bullish engulfing pattern formed during early morning hours (around 03:45–04:00 ET) near 0.2500, suggesting a temporary bullish reversal. However, the price failed to sustain above 0.2505, with a bearish rejection occurring shortly after. The 0.2480–0.2490 range has acted as a strong support area, where price has bounced multiple times. A doji formed near 0.2488 during the 19:00–19:15 ET session, indicating indecision and potential reversal. These patterns suggest that buyers and sellers are in a tug-of-war around key psychological levels.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs crossed multiple times during the consolidation phase around 0.2500–0.2505. The 50-period SMA remains above the 20-period line, indicating a bearish bias for the shorter term. On the daily chart, the 50-period SMA is above the 100-period and 200-period SMAs, reinforcing the longer-term bearish tilt. However, the recent price action above the 50-period SMA on the 15-minute chart suggests potential for a short-term bounce.

MACD & RSI

The MACD line crossed above the signal line during the early morning hours, forming a bullish signal, but soon after, the MACD line crossed back below the signal line, indicating a potential bearish reversal. The histogram showed a shrinking positive area during this phase, signaling waning bullish momentum. RSI reached a high of 72 near 0.2554, suggesting overbought conditions, but failed to break the 75 level. It then retreated to the 60–65 range, indicating moderate bearish pressure. RSI has remained in the mid-range for most of the session, suggesting a lack of strong conviction from either buyers or sellers.

Bollinger Bands

Volatility increased significantly during the midday and afternoon hours, with the Bollinger Bands widening to accommodate a range of 0.2480–0.2525. Price reached the upper band at 0.2554 before retracting sharply. The bands have since narrowed slightly, suggesting a potential consolidation phase. Price currently sits near the middle band, with the lower band hovering around 0.2450. A break below this level could trigger a retest of the 0.2430–0.2440 area, where a prior support level is located.

Volume & Turnover

Volume spiked during the 03:30–04:00 ET session and again during the 06:00–07:00 ET hour, coinciding with key resistance and consolidation levels. Notional turnover increased during these periods as well, confirming the price action. A divergence between price and volume appeared during the 15:00–16:00 ET session, as price declined from 0.2492 to 0.2432 while volume remained relatively low. This suggests weak bearish conviction, and a potential rebound may be in the cards if volume increases with a reversal.

Fibonacci Retracements

Applying Fibonacci retracement levels to the 0.2480–0.2554 swing, the 61.8% retracement level is around 0.2518, which coincided with a key consolidation area. The 38.2% level at 0.2529 was also tested but rejected. On the daily chart, the 61.8% retracement level of a broader swing from 0.2392 to 0.2554 lies at 0.2466, which aligns with the opening price of the session. A retest of this level may offer support in the near term.

Backtest Hypothesis

The backtesting strategy under evaluation employs a combination of RSI, MACD, and volume confirmation to identify potential reversal points. It triggers a long signal when RSI dips below 30, MACD crosses above the signal line, and volume increases by at least 30% above the 20-period average. A short signal is triggered when RSI rises above 70, MACD crosses below the signal line, and volume similarly spikes. Given the current context—where RSI is in the neutral range, MACD is oscillating around the signal line, and volume has been mixed—this strategy would not have triggered a long or short entry at the current time. However, with price hovering near key Fibonacci and support levels, the next few hours could offer a viable entry point if these conditions align.