Market Overview: API3/Tether (API3USDT) – 2025-10-08

• API3/Tether traded in a volatile 24-hour window, dropping from a high of 1.03 to a low of 0.867, ending at 0.8715
• Momentum turned bearish with RSI dipping into oversold territory and MACD signaling weak bullish divergence
• Bollinger Bands expanded, showing high volatility, with price currently near the lower band
• Volume and turnover surged after 00:00 ET, confirming the breakout to the downside
• A potential short-term reversal signal emerged near 0.87–0.88, marked by a bullish harami and increased volume

The API3/Tether (API3USDT) pair opened at 0.8866 on 2025-10-07 at 16:00 ET, reached a high of 1.03, and a low of 0.867 before closing at 0.8715 on 2025-10-08 at 12:00 ET. Total trading volume over the 24-hour window amounted to 19,328,833.97, while notional turnover reached $16,349,822. The pair exhibited a sharp bearish trend, followed by a possible consolidation phase.

Structure & Formations

API3USDT developed a key bearish breakdown during the early hours of 2025-10-08, with a sharp move from 0.944 to 0.877 within 15 minutes. A notable bullish harami pattern formed at 0.871–0.875, signaling potential near-term reversal. Resistance levels emerged at 0.892 (prior high), 0.901 (congestion zone), and 0.912 (failed breakout point). Support levels at 0.867, 0.8715, and 0.876 appear to hold firm.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages crossed below price between 02:00 and 04:00 ET, indicating bearish momentum. On the daily chart, the 50-period SMA at 0.892 now acts as a dynamic resistance, with the 200-period SMA at 0.918 providing further overhead pressure. Price appears to be consolidating below the key 50/200 MA confluence, suggesting bearish control.

MACD & RSI

The MACD line crossed below the signal line early on 2025-10-08, confirming a bearish shift in momentum. RSI dropped to 27 by 13:00 ET, entering oversold territory and hinting at potential short-term buying interest. However, a bearish divergence emerged between RSI and price after 06:00 ET, suggesting the downtrend could continue in the near term.

Bollinger Bands

Bollinger Bands expanded during the early hours as volatility surged, with price dipping below the lower band at 0.877 and bouncing back slightly. The contraction phase began after 07:00 ET, signaling a potential end to the volatile bearish phase. Price has remained within the bands since, suggesting short-term range-bound trading may resume unless a breakout occurs above 0.892 or below 0.867.

Volume & Turnover

Volume spiked dramatically between 00:00 and 02:00 ET, with over 2.6 million contracts traded during the breakdown from 0.944 to 0.877. Notional turnover also surged during that window, confirming the strength of the bearish move. Volume has since declined, indicating waning selling pressure. A divergence between rising price and declining volume after 09:00 ET suggests caution in interpreting potential bullish bounces.

Fibonacci Retracements

Applying Fibonacci retracements to the 0.877–1.03 swing, key levels at 0.922 (61.8%) and 0.901 (38.2%) have shown resistance. On the daily chart, the 0.892 level aligns with the 23.6% retracement level of the broader downtrend from 0.91 to 0.877, making it a critical area for a potential reversal or consolidation.

Backtest Hypothesis

The backtesting strategy involves a combination of RSI divergence and volume confirmation to identify potential trend reversals. A short-term long bias is suggested when RSI dips into oversold territory (<30) and volume increases on a bullish harami pattern. Given the current setup near 0.8715, where RSI is in oversold territory and a bullish harami has formed, the conditions align with the hypothesis. However, confirmation above 0.875 with increasing volume would strengthen the signal.