Market Overview for API3/Tether (API3USDT) on 2025-10-11

• API3/Tether (API3USDT) closed at 0.6114 after a volatile 24-hour session with a high of 0.8678 and low of 0.1606.
• Momentum shifted multiple times, with RSI and MACD confirming a lack of consensus between bullish and bearish forces.
• Volatility spiked sharply during the overnight session, with a 30-minute candle dropping as low as 0.1606 on heavy volume.
• Bollinger Bands show recent price action trading near the upper band, with a sharp reversion to the mean following the flash crash.
• Notional turnover spiked over $2 million during the flash crash but has since normalized with declining volume.

API3/Tether (API3USDT) opened at 0.7737 on 2025-10-10 at 12:00 ET and reached an intra-day high of 0.8678 before dropping sharply to a low of 0.1606. The price closed at 0.6114 as of 12:00 ET on 2025-10-11. Total volume for the 24-hour period was approximately 12.96 million API3, with a notional turnover of $8.07 million.

The 15-minute chart reveals a sequence of strong bearish and bullish signals. A large bearish engulfing pattern emerged during the overnight hours, confirming a sharp reversal from $0.86 to $0.16. Following the flash crash, the price bounced back with a bullish reversal structure, forming a hammer and a small bullish engulfing pattern in the early morning hours. These patterns suggest a potential retest of the 0.6114 level as a new near-term support. Key resistance appears to be forming around 0.63–0.64, with prior failures at these levels indicating limited immediate upside potential.

The 20- and 50-period moving averages on the 15-minute chart are currently bearish, with the 50-line crossing below the 20-line in a death cross formation. The daily chart shows a similar bearish bias, with the 50, 100, and 200-period lines aligned in a downtrend. The RSI has moved from overbought to oversold territory, flashing a potential short-term rebound but lacking strong bullish confirmation. The MACD line has crossed the signal line multiple times, indicating indecisive momentum and a possible consolidation phase ahead.

Bollinger Bands show a sharp expansion during the flash crash, followed by a reversion to the mean as prices moved back toward the lower band. This suggests increased volatility and potential for further consolidation near the new support zone. The 61.8% Fibonacci retracement level from the high of 0.8678 to the low of 0.1606 now aligns with the current price of 0.6114, suggesting it could hold as a key psychological level in the near term.

Backtest Hypothesis

The backtesting strategy described involves a swing-trading approach based on candlestick patterns and Fibonacci retracements. Specifically, it aims to identify bullish reversal patterns such as hammers and bullish engulfing near key Fibonacci levels, particularly the 61.8% retracement. Upon confirmation, a long entry is initiated with a stop-loss set below the next bearish structure or recent low. The strategy assumes that retracement levels and candlestick patterns can provide high-probability setups in the API3/Tether pair.

Given the recent action, the 0.6114 level coincides with the 61.8% retracement and appears to be holding as a new support. A potential long entry could be considered if a bullish reversal candle confirms the level, with a stop-loss placed below 0.6000. However, given the recent volatility and lack of clear directional momentum, this approach is best suited for a high-risk, high-reward environment. It would be prudent to monitor volume and RSI for additional confirmation before entering.