2ZTRY’s Bullish Engulfing Fails to Confirm on Weak Rebound Volume

Summary
• 2ZTRY formed a bullish engulfing pattern near $4.075–4.088 after a sharp selloff.
• Momentum shifted from oversold RSI (below 30) to moderate strength.
• Volatility expanded during the 07:00–09:00 ET rebound with above-average turnover.
• Price held above the 20-period moving average on the 5-minute chart.
• Bollinger Band contraction early morning preceded a breakout.

DoubleZero/Turkish Lira (2ZTRY) opened at $4.206 on 2026-02-06 at 12:00 ET, peaked at $4.305, and bottomed at $4.034 before closing at $4.045 on 2026-02-07 at 12:00 ET. The pair traded on a 24-hour volume of 655,935.0 and turnover of $2,746,401.4.

Structure & Formations

2ZTRY displayed a sharp bearish reversal from $4.293 to $4.034 over 13 hours, followed by a consolidation phase and a modest rebound. A bullish engulfing pattern formed at the $4.075–4.088 level, suggesting possible short-term support. A potential resistance is forming near the $4.132–4.138 range.

Moving Averages and MACD

The 20-period moving average on the 5-minute chart acted as dynamic support during the rebound. The MACD crossed to positive territory during the 06:30–07:30 ET rebound, confirming the shift in momentum. The RSI bottomed near oversold levels (29) and rebounded into the mid-40s, indicating moderate strength.

Bollinger Bands and Volatility

Volatility was contracted during the early morning hours before a sharp expansion during the selloff and subsequent rebound. Price briefly closed near the upper Bollinger Band during the 03:15–03:30 ET surge but found support near the lower band during the 07:15–07:30 ET decline.

Volume and Turnover

Volume spiked during the sharp selloff between 07:00–07:30 ET, with high notional turnover ($75.5M). A divergence in volume was observed during the rebound, with lower volume despite higher prices, suggesting cautious sentiment. The most recent bullish reversal at 07:15–07:30 ET saw strong volume confirmation.

Fibonacci Retracements

The recent 5-minute swing from $4.034 to $4.293 saw key retracement levels at 38.2% ($4.15) and 61.8% ($4.185) acting as temporary support and resistance. On the daily chart, the 61.8% level of the larger move could coincide with the $4.185–4.195 range, which has shown resistance in previous sessions.

The market appears to be testing key support levels after a sharp correction. While the bullish engulfing pattern and RSI rebound suggest a potential short-term recovery, caution is warranted as volume on the rebound remains subdued. 2ZTRY may test $4.100–4.120 in the next 24 hours, but risks remain if the $4.068 level is breached again.