API3/Tether (API3USDT) Market Overview for October 5, 2025

• API3USDT rose to $0.8201 before consolidating near $0.8029
• Price formed bullish and bearish engulfing patterns during the morning
• RSI suggests overbought conditions during the peak
• Volatility increased as Bollinger Bands widened
• Volume surged during the breakout but declined on pullbacks

API3USDT opened at $0.7837 on October 4 at 12:00 ET, reached a high of $0.8201, and closed at $0.8029 as of October 5 at 12:00 ET, with a low of $0.7831. The 24-hour volume was approximately 567,800 units, and the notional turnover reached $451,530 during the reporting period, reflecting heightened trading activity and price movement.

The pair displayed a notable bullish engulfing pattern around 08:00–08:15 ET and a bearish counterpart during the 12:00–12:15 ET window. These suggest a tug-of-war between buyers and sellers, with no clear resolution. A strong breakout at $0.8201 failed to hold, indicating potential resistance in that area. Key support levels formed around $0.8000–0.8010, which coincided with multiple close entries.

MACD showed a positive crossover in the early hours, reinforcing bullish momentum, while RSI hit overbought territory (above 70) during the high, signaling a potential reversal. Bollinger Bands expanded as volatility increased during the morning surge, then narrowed slightly during the afternoon consolidation. Price action hovered near the upper band during the peak and drifted back toward the center in the last hours.

Volume surged during the morning breakout but declined after the price consolidation, suggesting reduced conviction in the bullish move. Fibonacci retracement levels from the key $0.7831–$0.8201 swing indicated that the 61.8% level (~$0.806) could serve as a psychological target for a potential retest. The 20-period moving average on the 15-minute chart remained above the 50-period line, suggesting continued bullish bias in shorter-term momentum.

The backtesting strategy described involves a mean-reversion approach, triggering longs when price closes above the 20-period moving average and shorts when it closes below the 50-period line. RSI overbought and oversold levels are used as exits. Based on the recent patterns, this strategy may capture some of the consolidation and breakout phases but could struggle with false signals during volatile swings.