Liquity (LQTYUSDT) closed at $1.205 (12:00 ET) after opening at $1.23 (12:00 ET-1), marking a 9.4% decline on the day. The price traded between $1.109 (low) and $1.238 (high), with total volume of $1,534,779 and total turnover of $1,260,334 across the 24-hour window.
Summary
• Liquity dropped 9.4% to $1.15, testing critical support as volume surged during the decline.
• A bullish engulfing pattern at $1.205 suggests potential reversal after sharp bearish momentum.
• RSI dipped to 28, signaling oversold conditions with rebound possibility.
Structure & Formations
The
$1.15 level acted as key support, holding after a sharp drop to $1.119. Resistance clusters at
$1.20–$1.22 (previous lows) and
$1.23 (opening price) may cap near-term gains. A bearish
falling wedge pattern formed between $1.15 and $1.23, but the final candle’s
bullish engulfing (closing at $1.205) hints at a potential breakout.
Moving Averages
The
15-minute MA20 ($1.18) and
MA50 ($1.17) remain bearish but are narrowing, suggesting a possible trend reversal. On the daily chart, prices are below the
50-day MA ($1.20) and
100-day MA ($1.25), indicating a broader downtrend.
MACD & RSI
MACD dipped below its signal line, reflecting bearish momentum, but the recent rebound created a
positive divergence with RSI. The RSI at
28 (14-period) confirms oversold territory, raising odds of a short-term bounce.
Bollinger Bands
Volatility spiked during the $1.109–$1.226 swing, with Bollinger Bands widening. The price rebounded to the
upper band ($1.22) at $1.205, suggesting exhaustion of downward pressure.
Volume & Turnover
The largest volume surge (
$408,932) coincided with the $1.119 low, signaling panic selling. Recent buying at $1.13–$1.20 lacked comparable volume, hinting at weak conviction.
Turnover divergence (higher price with lower turnover) persists, cautioning against aggressive longs.
Fibonacci Retracements
A
38.2% retracement ($1.154) and
61.8% retracement ($1.19) of the $1.109–$1.226 swing act as critical barriers. A break above $1.22 would invalidate the falling wedge, targeting $1.25.
Outlook
Liquity may rebound toward $1.20–$1.22 over the next 24 hours, but sustained volume is needed to confirm a trend reversal. Traders should watch $1.15 support closely; a breach could extend losses to $1.10. Risk remains elevated due to low liquidity at current levels.
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