Liquity/Tether (LQTYUSDT) 24-Hour Market Overview

Summary
• Price action shows a 24-hour range between $0.479 and $0.564 with a close near the lower end.
• Volatility surged overnight, with volume spiking during the $0.53–$0.56 range.
• Momentum indicators suggest a potential pullback after recent overbought levels.

Liquity/Tether (LQTYUSDT) opened at $0.493 on 2025-11-05 12:00 ET, reached a high of $0.564, a low of $0.479, and closed at $0.494 on 2025-11-06 12:00 ET. Total 24-hour volume was 2,686,800.7, and notional turnover (amount) was 642.9.

The past 24 hours for LQTYUSDT displayed a sharp overnight rally driven by heavy volume concentrated between 03:00 and 04:00 ET, where the price surged from $0.53 to $0.565 on significant turnover. Following this, the price consolidated but then rolled over after 06:00 ET as selling pressure emerged. The 15-minute candlestick chart shows a bearish engulfing pattern forming from 06:15 to 07:00 ET, indicating a short-term top and potential reversal to the downside. A key support level appears to be forming around $0.515–$0.505, which has held on multiple retests in the morning hours.

The 20-period and 50-period moving averages on the 15-minute chart are currently in a bullish alignment, though the 50-period MA is starting to flatten as the price declines. On the daily chart, the 50, 100, and 200-day MAs are converging near $0.51–$0.52, suggesting potential support. Price may test these levels in the next 24 hours.

MACD turned bearish in the last four hours, with a bearish crossover and declining histogram. RSI has dropped below 50, indicating weakening momentum and a potential continuation of the current downward trend. While not deeply oversold, the RSI may signal a pullback could be limited if key support levels fail to hold. Bollinger Bands have widened following the overnight rally, and the current price appears near the lower band, suggesting possible retesting of the mean. A contraction in volatility could signal consolidation before a new directional move.

Volume has remained elevated during the sell-off, especially after 07:00 ET, with no clear divergence between price and volume, suggesting the selling pressure is genuine. Notional turnover has remained above average, indicating active participation from both buyers and sellers. A breakdown below $0.50 could trigger increased volatility and further short-term bearish pressure.

Fibonacci retracement levels for the overnight $0.479–$0.564 move suggest key support at 61.8% ($0.526) and 38.2% ($0.537). Price currently resides near the 61.8% level, which may serve as a critical short-term pivot. A break below this could target the next retracement at $0.509 and then $0.500.

If the current bearish momentum continues and volume remains active, LQTYUSDT may test support near $0.500–$0.495 in the next 24–48 hours. A failure to hold $0.50 could open the door to further downside toward $0.485–$0.480, with a risk of a broader correction in the medium term.

Backtest Hypothesis
The RSI-14 indicator is a commonly used tool to identify overbought and oversold conditions in price action. In the context of LQTYUSDT, a backtesting strategy based on RSI-14 could be applied to determine the effectiveness of entering long positions when RSI dips below 30 (oversold) and exiting after five trading days. However, due to a technical limitation, the current system is unable to retrieve historical RSI-14 data for LQTYUSDT. This issue may stem from either a lack of available data or an incompatibility with the current data source.

To proceed with this backtest, three potential solutions can be considered: (1) Providing historical price or RSI data for LQTYUSDT, (2) Switching to a different symbol with available technical data, or (3) Manually identifying RSI-oversold dates and using those for the backtest. Each approach has trade-offs in terms of data quality, effort, and speed. For instance, manually identifying RSI-oversold dates is a quicker workaround but relies on accurate date selection to maintain backtest integrity.

Given the current volatility and recent price action, LQTYUSDT may offer a valid test case for such a strategy. A properly conducted backtest could provide insights into the efficacy of using RSI-14 as a timing tool for this pair.