Liquity/Tether (LQTYUSDT) Market Overview – 24-Hour Analysis

• Price opened at 0.892 and closed 0.778 amid a sharp 24-hour decline.
• Volatility spiked during the early morning ET, with a 6.2% drop in 90 minutes.
• RSI (15 min) entered oversold territory, hinting at potential near-term bounce.
• Volume surged during the selloff, but turnover failed to confirm bullish divergence.
• A large bearish engulfing pattern formed mid-day, signaling bearish momentum.

Liquity/Tether (LQTYUSDT) opened at 0.892 on 2025-09-21 at 12:00 ET and closed at 0.778 the next day, with a high of 0.936 and a low of 0.753. The 24-hour trading period saw a total volume of 1,463,877.1 and a notional turnover of approximately $1,312,446.35. Price action exhibited a bearish reversal pattern, with momentum indicators reflecting a significant decline in buying interest.

Structure & Formations

Price broke a key support level at 0.876, triggering a cascade of selling pressure. A bearish engulfing pattern emerged at 0.926–0.915 at 03:30 ET, confirming bearish control. A large doji at 0.922–0.922 at 04:00 ET suggested indecision. A final bearish hammer formed at 0.782–0.778 at 12:00 ET, hinting at a possible near-term reversal. Notable support levels at 0.776 and 0.767 are now in focus.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages both turned downward after 06:00 ET, aligning with the selloff. The price closed below both, reinforcing bearish bias. On the daily chart, the 50-period and 100-period moving averages were not available in the input data, but the 200-period line is currently positioned above 0.815, indicating a bearish medium-term trend.

MACD & RSI

The MACD turned negative at 05:00 ET, confirming the bearish momentum. The signal line crossed below the MACD line, reinforcing a sell signal. The RSI (15 min) dipped to 28 at 07:00 ET, entering oversold territory, which may suggest a short-term bounce. However, the divergence between price and RSI during the selloff is weak, suggesting a lack of conviction in the reversal.

Bollinger Bands

Volatility expanded significantly during the selloff, with the 20-period Bollinger Bands widening from 0.898–0.906 to 0.871–0.869. Price closed near the lower band at 0.778, indicating potential exhaustion. A retest of the lower band could trigger a temporary bounce.

Volume & Turnover

Volume spiked during the selloff, particularly in the 06:15–06:30 ET and 09:45–10:00 ET timeframes, with large trades pushing the price down. However, turnover failed to confirm the strength of these moves. A divergence between volume and price was observed between 05:30–06:15 ET, suggesting weaker conviction in the bearish wave.

Fibonacci Retracements

The 0.618 Fibonacci retracement level from the recent swing high (0.936) to the low (0.753) is now at 0.782, which coincides with the 12:00 ET close. A retest of this level could trigger a bounce. The 0.382 retracement at 0.842 may act as resistance if the market reverses.

Backtest Hypothesis

A potential backtest strategy could focus on exploiting the bearish engulfing pattern and oversold RSI. A sell signal could be triggered at the close of the bearish engulfing candle, with a stop-loss placed just above 0.93. The Fibonacci 0.782 level could serve as a target for a short-term bounce. A 1:2 risk-to-reward ratio would make this trade attractive if volatility remains high. This approach would align with the observed technical indicators, particularly the RSI and MACD confirmation of bearish momentum.