Internet Computer/Tether Market Overview for 2025-10-06

• ICP/USDT fell to 4.515 before rebounding to 4.641, showing a strong reversal in late hours.
• RSI moved from oversold territory to overbought, signaling a potential momentum shift.
• Bollinger Bands show increasing volatility with price hovering near the upper band.
• Volume spiked during late ET hours, confirming the bullish reversal.
• A potential support area appears at 4.500–4.520, with resistance near 4.630–4.650.

Internet Computer/Tether (ICPUSDT) opened at 4.608 on 2025-10-05 at 16:00 ET and closed at 4.639 at 12:00 ET on 2025-10-06. The 24-hour period saw a low of 4.503 and a high of 4.670, with a total traded volume of 1,306,724.91 ICP and a notional turnover of approximately $594,656.26.

The price action over the past 24 hours was marked by a sharp descent to a low of 4.503 in the early hours of 2025-10-06, followed by a strong and sustained rebound. The pullback was supported by a volume spike and confirmed by a bullish reversal pattern. The price has since remained above the 4.550 level, indicating a possible consolidation phase. The 15-minute chart reveals multiple key levels: a strong support at 4.500–4.520 and a resistance cluster at 4.630–4.650. Notable candlestick formations include a bullish engulfing pattern at 4.503 and an indecisive doji near 4.614, suggesting potential exhaustion at that level.

The 20-period and 50-period moving averages on the 15-minute chart intersect near 4.550–4.560, suggesting a short-term equilibrium point. The 50-period moving average on the daily chart is above the 200-period line, indicating a longer-term bullish bias. The MACD has crossed into positive territory and shows increasing momentum, while the RSI has moved into overbought territory, signaling caution. Bollinger Bands have widened in the late hours, reflecting a surge in volatility, with the price closing near the upper band, suggesting a possible continuation or pullback.

Volume and turnover data confirm the strength of the reversal, particularly in the 15-minute window between 00:00 ET and 02:00 ET, where volume surged to support the price action. Notional turnover reached a peak of $12,981.76 during the 15-minute interval ending at 15:30 ET on 2025-10-06. Fibonacci retracement levels show that the 61.8% level (4.603) acted as a key psychological barrier before the price broke through. The 38.2% retracement level (4.566) also saw minor consolidation. These levels suggest that the market is testing key inflection points ahead of a potential breakout.

The MACD and RSI indicators suggest that momentum is currently favoring the bulls, but the overbought condition of the RSI raises the possibility of a pullback. The 15-minute chart's Bollinger Bands and volume profile indicate that the market is in a high-volatility phase, and a consolidation may be ahead before a new directional move. Investors should watch for a break above 4.650 or a retest of 4.500–4.520 for confirmation of the next leg in either direction.

Backtest Hypothesis
Based on the observed price action, the MACD crossover into positive territory and the bullish engulfing pattern suggest a potential short-term long bias. A backtest strategy could involve entering a long position on a close above 4.610 (the 50-period moving average on the 15-minute chart) with a stop-loss just below 4.590 (the recent swing low) and a take-profit at 4.650–4.670. This setup aligns with the RSI divergence and the strong volume confirmation during the reversal phase. The strategy would aim to capture the bullish momentum while limiting downside exposure with a defined stop. Given the current overbought RSI reading and widening Bollinger Bands, the trade may require tight risk management and early profit-taking if the price shows signs of exhaustion.