ILVUSDT Breaks Below $4.00, Death Cross Confirms Bearish Shift

Summary
• ILVUSDT breaks below key support at $4.00 on 24-hour data, with bearish engulfing patterns confirming the breakdown.
• RSI remains in oversold territory, suggesting potential for short-term bounce, but momentum remains bearish.
• Volatility expanded after 7:00 AM ET as price dropped to $3.88, accompanied by rising turnover.
• Bollinger Bands indicate increased dispersion, with price closing near the lower band.
• 50-period MA on 5-minute chart has crossed below 20-period MA, signaling short-term bearish bias.

Market Overview

Illuvium/Tether (ILVUSDT) opened at $4.01 on 2026-02-06 at 12:00 ET, reached a high of $4.14, a low of $3.88, and closed at $3.92 by 12:00 ET on 2026-02-07. Total volume was 97,958.91 ILV, with notional turnover of $387,749.37.

Structure & Formations

Price broke below the critical $4.00 support level during the 7:15 AM ET hour, confirmed by a bearish engulfing pattern. A potential short-term rebound appears to be encountering resistance at $4.04, while $3.95 may offer near-term support.

Moving Averages

The 5-minute chart shows a death cross forming, with the 50-period MA dipping below the 20-period MA. Daily MAs are neutral, with no clear alignment forming.

Momentum & Volatility

RSI remains in oversold territory for most of the session but has shown no signs of recovery by the 24-hour close. Bollinger Bands have expanded significantly, indicating heightened volatility. Price appears to be consolidating near the lower band, which may precede a continuation of the downward move.

Volume and Turnover

Volume and turnover surged between 7:15 AM and 10:00 AM ET, coinciding with the breakdown below $4.00. This divergence suggests increased selling pressure and conviction in the bearish trend.

Key Observations and Outlook

The breakdown below $4.00 and the bearish engulfing pattern suggest continued pressure toward $3.90–$3.88. While RSI in oversold territory may support a short-term bounce, the broader trend remains bearish. Investors should watch for a potential retest of the $4.04 resistance to assess whether a reversal or continuation is likely.

A sharp rebound without follow-through volume could signal a trap, so caution is warranted ahead of further directional movement.