Market Overview for Blur/Tether (BLURUSDT) – 2025-09-27

• Price action showed a moderate bullish bias with a late-day pullback.
• RSI indicated overbought levels earlier before a sharp reversal.
• Volume increased sharply during the key breakout but later diverged from price.
• Bollinger Bands showed expansion after consolidation, highlighting rising volatility.
• A 15-minute bearish engulfing pattern emerged near the high, suggesting potential near-term reversal.

The 24-hour candle for Blur/Tether (BLURUSDT) opened at $0.07134 at 12:00 ET − 1 and reached a high of $0.07377 before closing at $0.07265 at 12:00 ET, with a low of $0.07114. The pair experienced a total volume of 4,658,997.4 BLUR and a notional turnover of approximately $323,000 (based on weighted average prices).

BLURUSDT displayed a strong upward move in the afternoon, breaking above key intraday resistance, but failed to hold gains as a bearish reversal emerged in the overnight hours. A 15-minute bearish engulfing pattern formed after the high was reached, signaling potential exhaustion in buying pressure. Support levels appear to congregate near $0.0724–$0.0726, with resistance above at $0.0729–$0.0731.

On the 15-minute chart, the 20-period and 50-period moving averages crossed into a bullish alignment during the upward move but have since diverged. The RSI reached overbought territory (above 70) at the high and has since retreated toward neutral levels, indicating potential for a pullback. Bollinger Bands expanded significantly during the breakout but have since shown signs of contraction, suggesting a period of consolidation could follow.

A Fibonacci retracement drawn from the 15-minute swing high at $0.07377 down to the low at $0.07114 indicates key levels at 38.2% ($0.0731) and 61.8% ($0.0723). Price has tested the 61.8% level in recent candles, which could act as a short-term floor. Volume spiked during the breakout but has since declined, which may hint at fading conviction. If price fails to reclaim $0.0731, a retest of the $0.0724–$0.0726 range is likely.

Backtest Hypothesis
The described backtest strategy relies on confirming a 15-minute bearish engulfing pattern after a breakout above a key resistance, with RSI above 70. A short entry could be triggered on a close below the engulfing candle’s low, with a stop above the high and a target at the 61.8% Fibonacci level. Given the recent divergence in volume and RSI, this approach appears to align with the observed reversal signals, making it a potentially viable short-term strategy. However, the high volatility and thin volume in the overnight session may increase execution risks.