ICON/Tether Market Overview – 2025-10-06

• ICON/Tether (ICXUSDT) declined through key support levels before rebounding and forming a small bullish reversal pattern near 0.1184.
• 24-hour volatility expanded, with price bouncing between 0.1176 and 0.1219, while volume surged near the 15-minute high at 0.1219.
• RSI showed oversold conditions during the early morning, followed by a moderate upward shift, suggesting potential for a short-term rebound.
• Price closed above 0.1201 at 12:00 ET, indicating a possible short-covering rally, though bearish momentum remains intact.
• Bollinger Bands reflected a narrowing phase before an upward breach, signaling a potential breakout or breakdown scenario ahead.

ICON/Tether (ICXUSDT) opened at 0.1199 on 2025-10-05 at 12:00 ET and reached a high of 0.1219 and a low of 0.1176 before closing at 0.1201 at 12:00 ET on 2025-10-06. The pair traded with a total volume of 534,351.1 and a turnover of 63,183.8 USDT over the 24-hour period. The price action showed a bearish bias early on but ended the period with a modest rally.

Structurally, key support levels were identified at 0.1183 and 0.1176, both of which saw heavy volume and price consolidation. Resistance levels formed at 0.1194 and 0.1201. Notable candlestick formations included a bullish pinocchio pattern near 0.1184, a doji at 0.1187, and a bullish engulfing pattern at 0.1191. These formations suggest a possible reversal from the early morning selloff, though the overall bias remains bearish.

On the 15-minute chart, the 20- and 50-period moving averages were both below price, supporting the bearish trend. The 50-period MA crossed below the 20-period MA in the late morning, reinforcing the sell pressure. RSI bottomed at 28 in the early hours, then climbed to 49 by 12:00 ET. While not overbought, the rise in RSI aligns with the price rebound. MACD remained negative but showed a flattening trend, indicating a possible shift in momentum. Bollinger Bands reflected a contraction before the 0.1201 close, suggesting the market may be preparing for a breakout.

The 15-minute volume spiked at 0.1180 and 0.1203, particularly during the 03:15–03:45 ET and 15:00–16:00 ET periods, coinciding with the price consolidation and breakout attempts. Notional turnover increased during these times, supporting the price action. A divergence between price and volume was observed during the 18:00–19:00 ET selloff, where price dropped sharply but volume remained moderate—suggesting potential exhaustion in the downward move.

Fibonacci retracements applied to the 0.1176–0.1219 swing identified a 38.2% level at 0.1196 and a 61.8% level at 0.1209. Price held just below the 61.8% level at 0.1201, indicating possible resistance in the short term. The 38.2% level served as a key support during the 04:00–05:00 ET rally, suggesting it may be a pivot point for near-term buyers.

The market appears to be in a consolidation phase after a sharp selloff earlier in the day. While a bearish bias remains, the formation of bullish reversal patterns and the rebound in RSI suggest a possible short-term rebound into 0.1209. However, a break below 0.1183 could reignite bearish momentum.

A potential backtesting strategy could involve entering a long position on a bullish engulfing pattern formation near 0.1184 with a stop loss placed below 0.1176 and a target near the 61.8% Fibonacci level at 0.1209. This approach leverages the reversal formation, RSI rebound, and Fibonacci structure. A short trade could also be considered on a break below 0.1183, with a stop above 0.1194 and a target at 0.1176. Both strategies aim to capture short-term swings within the established range and would benefit from volume confirmation to ensure the strength of the move.