Market Overview for 1inch/Tether (1INCHUSDT)

Summary
• 1INCHUSDT traded between $0.2036 and $0.2245 over 24 hours, closing near intraday support.
• Strong bearish momentum emerged mid-day, confirmed by RSI and MACD divergence.
• Volume surged during key bearish breakouts but has since softened, signaling potential consolidation.
• Price appears to be testing the 0.215–0.217 Fibonacci retracement level on the 15-minute chart.
• A 1-day bearish reversal pattern emerged, suggesting further downside may be in play.

Opening at $0.2039 on the previous day’s 12:00 ET bar, 1INCHUSDT reached a high of $0.2245 before retreating to close at $0.2172 by 12:00 ET. Total trading volume across the 24-hour window was 12,818,730.9 units, with a notional turnover of $2,787,134.2. The pair has shown a clear bearish shift amid moderate volatility, with price action consolidating within a descending channel.

Structure & Formations

Price action revealed a strong bearish reversal pattern during the 19:15–23:30 ET window, where multiple Bearish Engulfing and Dark Cloud Cover patterns formed, confirming a shift in sentiment. Key support levels were identified around $0.215 and $0.213, while resistance emerged at $0.218 and $0.221. A notable bearish breakdown occurred after a 15-minute bar closed with a 2.2% decline from its open.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs have diverged, with the 20-period line crossing below the 50-period line—a bearish signal. Daily moving averages suggest a longer-term downtrend, as the 50-period SMA is well below both the 100-period and 200-period SMAs. Price remains well below all key moving averages, reinforcing the bearish bias.

MACD & RSI

The MACD line turned negative and crossed below the signal line after 19:00 ET, with bearish divergence evident. The RSI dropped from 68 to 45 during the same period, entering neutral territory and confirming the weakening of bullish momentum. Overbought conditions were reached briefly at 68, followed by a sharp and sustained decline, pointing to a possible short-term oversold level near 38.

Bollinger Bands

Volatility has expanded significantly, with the upper band reaching $0.226 and the lower band dropping to $0.214. Price has spent much of the day oscillating between these bands, with several instances of testing the lower band. A breakout below the 15-minute lower band would signal increased bearish conviction.

Volume & Turnover

Volume spiked during the key bearish move from $0.2245 to $0.2172, with the 19:15–22:30 ET session recording the highest volume at over 1.5 million units. Notional turnover mirrored volume trends, peaking at $35,000 during the same period. Divergence between price and turnover is not evident, supporting the reliability of the bearish signal.

Fibonacci Retracements

The 0.618 retracement level (0.215) was tested twice during the 24-hour period, with price bouncing back on the second attempt. The 0.382 retracement level (0.217) has become a minor resistance. On the daily chart, the 0.618 retracement of a recent bullish swing at $0.2039 has not yet been reached, indicating a potential target for further correction.

Backtest Hypothesis

Given the repeated appearance of bearish engulfing patterns and the divergence in momentum indicators, a short bias is reasonable. A rules-based backtest could capitalize on these patterns. For instance, using a daily bar approach, a Bearish Engulfing candle could trigger a short entry at the close, with an exit at the next day’s close. This would allow investors to assess the efficacy of such patterns in real-world conditions without requiring complex intraday logic.