LRCUSDT Breaks Key Support Amid Weak Bullish Volume

Summary
• Price action formed a bearish divergence on volume and closed below key support at 0.0397.
• RSI signaled oversold conditions, suggesting potential short-term rebound, though momentum remains weak.
• Volatility expanded mid-day, with a 0.0008 range between 0.0396 and 0.0405 before consolidation.
• A bullish engulfing pattern emerged near 0.0396, possibly indicating near-term buying interest.

Market Overview

Loopring/Tether (LRCUSDT) opened at 0.0397 on 2026-02-06 12:00 ET, reached a high of 0.0410, and a low of 0.0385, closing at 0.0398 on 2026-02-07 12:00 ET. Total 24-hour volume was 16,782,580.0 with $665,437.64 in notional turnover.

Structure & Formations

Price tested a key support level at 0.0397 multiple times, breaking it late in the session. A bullish engulfing pattern formed near 0.0396, but failed to hold above it. A doji appeared at 0.0391, signaling indecision and potential exhaustion in bearish momentum.

Moving Averages

On the 5-minute chart, the 20-period MA crossed below the 50-period MA in early afternoon, forming a death cross. Daily 50/200-period MA show a bearish alignment, with price trading below the 200-day MA, indicating a longer-term downtrend.

MACD & RSI

MACD showed bearish momentum with a negative histogram expanding after 19:00 ET. RSI reached oversold territory around 0.0385 (below 30), hinting at a potential near-term bounce. However, divergence between volume and price weakens the strength of this signal.

Bollinger Bands

Volatility expanded between 19:00 and 22:00 ET, with price briefly breaching the upper band. It subsequently collapsed into the lower band before consolidating near the middle band by close. This suggests a period of retraction and possible consolidation ahead.

Volume & Turnover

The highest 5-minute volume spike occurred at 16:15 ET (1.34 million contracts), coinciding with a drop to 0.0391. Notional turnover was significantly higher during the mid-session decline, showing bearish conviction. However, volume during the bullish retracement was weak, casting doubt on its sustainability.

Fibonacci Retracements

Applying Fibonacci to the 0.0391–0.0405 swing showed price stalled at the 61.8% level (0.0397) before continuing lower. A retest of the 50% level (0.0398) is likely in the next 24 hours.

The price could see a short-term rebound from current oversold conditions but appears to lack strong bullish conviction. Traders may watch for a break above 0.0402 to confirm a reversal. As always, volatility and low-volume signals carry risk of false breakouts or sharp reversals.