Liquity/Tether Market Overview

• Price rallied from $0.799 to $0.825 amid increasing volume, forming bullish patterns near key resistance.
• RSI and MACD suggest momentum favoring buyers, though price remains within Bollinger Bands.
• Volume surged during the late-night to early morning ET window, confirming strength in the upward move.

Liquity/Tether (LQTYUSDT) opened at $0.801 on 2025-09-16 12:00 ET and closed at $0.802 on 2025-09-17 12:00 ET, with a high of $0.825 and low of $0.797. Total volume reached 264,460 units, while turnover amounted to $209,461 over the 24-hour window.

Structure & Formations

The 24-hour chart for LQTYUSDT revealed a bullish reversal pattern starting at 19:30 ET, with a long bullish engulfing pattern confirming a breakout above $0.815. A key resistance at $0.825 was tested and broken late in the cycle, while a prior support at $0.805 held multiple times as a pivot point. A doji formed near $0.81 at 00:45 ET, signaling indecision but not a reversal.

Moving Averages

Short-term momentum was above both the 20-period and 50-period moving averages on the 15-minute chart. The daily chart showed price trading above the 50 and 100-day averages but below the 200-day line, suggesting medium-term optimism but long-term caution.

MACD & RSI

MACD turned positive after 19:00 ET and remained above the zero line, reinforcing bullish momentum. RSI reached 68 at the peak, indicating overbought conditions but without immediate bearish divergence. A pullback to the 50-55 range could set up a consolidation phase before the next move.

Bollinger Bands

Price moved within a moderate volatility range, staying within the bands for the majority of the period. A brief expansion at the $0.825 level indicated increased volatility during the breakout. Price appears to have found a new channel with the upper band now around $0.825 and the lower band near $0.805.

Volume & Turnover

Volume spiked during the 22:30 to 05:30 ET window, with turnover reaching a peak at $0.807 in early morning ET. A divergence was noted in the 00:15–00:30 ET window, where volume decreased while price advanced slightly, suggesting potential exhaustion in the short-term move.

Fibonacci Retracements

A key 61.8% retracement level was identified at $0.814, which was tested and held during the consolidation phase. The 15-minute swing from $0.799 to $0.825 placed 38.2% and 61.8% retracements at $0.806 and $0.814 respectively, both of which acted as support and resistance.

Backtest Hypothesis

The backtest strategy described involves entering a long position on a bullish engulfing pattern forming above a key Fibonacci support level, with a stop-loss below the pattern's low and a take-profit at the 61.8% retracement. Given today’s formation above $0.815 and confirmation at $0.825, a backtest could validate the effectiveness of this pattern in a low-volatility breakout scenario. The RSI overbought reading suggests a pullback is possible, making the 50-55 RSI range a potential entry zone for a continuation bias.