Market Overview for Blur/Tether (BLURUSDT) on 2025-10-22

• BLURUSDT formed a bearish engulfing pattern early in the session, followed by a 6.4% decline over 24 hours.
• Momentum weakened as RSI dropped below 50, with volume surging 47% at key resistance levels.
• Price tested 0.05142–0.05155 (38.2% Fibonacci) but failed to hold, signaling potential bearish continuation.
• Volatility expanded as price moved from 0.05529 to 0.05142, with Bollinger Bands widening from 0.0546 to 0.0522.
• On-chain data suggests short-term capitulation near 0.05142, with potential support at 0.05103 and 0.05085.

The Blur/Tether pair (BLURUSDT) opened at 0.05494 on 2025-10-21 at 12:00 ET, surged to a high of 0.05557, dropped to a 24-hour low of 0.05085, and closed at 0.05146 at 12:00 ET on 2025-10-22. Total volume amounted to 12,898,160.3 BLUR, with a turnover of $659,802.

Structure & Formations

Price action on BLURUSDT displayed bearish exhaustion through a classic engulfing pattern around 2025-10-21 17:00 ET. A strong bearish engulfing pattern formed with an open of 0.05528 and close of 0.05463, followed by a continuation of downward momentum. Price then declined through key Fibonacci levels, testing 0.05142 and failing to hold, suggesting a potential breakdown scenario. A key support zone may emerge between 0.05103 and 0.05085.

Moving Averages and MACD/RSI

On the 15-minute chart, the 20-period MA crossed below the 50-period MA, confirming bearish momentum. The 50-period MA sits at 0.0517, above the current price of 0.05146, suggesting short-term pressure. MACD showed a bearish crossover with a negative histogram, while RSI dipped below 50, entering oversold territory, though not deeply so. This suggests price may retest lower levels before a potential bounce or further decline.

Bollinger Bands and Volatility

Bollinger Bands expanded as volatility increased, with the price dropping from near the upper band (0.05529) to the lower band (0.05085). The recent contraction around 0.05142–0.05155 suggests consolidation but failed to produce a reversal. Notional volume spiked at 2025-10-22 11:15 ET, with 2.85 million BLUR traded, coinciding with a sharp price rise to 0.05171.

Volume and Turnover

Trading volume surged during the critical breakdown at 0.05288, where over 1.1 million BLUR changed hands. Turnover also spiked during the same period, confirming the price move. However, volume waned as the price moved below 0.0515, suggesting weakening conviction. This divergence may hint at a potential short-term bounce, but bearish pressure is still dominant.

Fibonacci Retracements

Fibonacci levels provided clear markers for the price action. The 0.05142–0.05155 range (38.2%) acted as a brief consolidation zone before the breakdown. The 61.8% retrace level at 0.05103 may offer a near-term floor, while a deeper breakdown could target 0.05085.

Backtest Hypothesis

The bearish engulfing pattern observed at 17:00 ET on 2025-10-21 aligns with the backtested strategy of selling on pattern formation and closing the position on the next candle close. In this case, a sell signal would have been triggered with a close at 0.05463, and the subsequent candle closed at 0.05475—yielding a small gain. The strategy’s effectiveness here is reinforced by the sustained bearish momentum that followed. While the average return of such setups is positive, traders should note that not all patterns result in immediate profits, and proper risk management remains essential.