Market Overview for DIA/Tether (DIAUSDT) on 2025-10-06

• DIAUSDT drifted lower in early ET hours but reversed sharply, closing near 0.5576 after a bullish reversal.
• Volume spiked above 60k during the 0115–0300 ET window, confirming the recovery from a key support near 0.5525.
• RSI remained in neutral territory, while Bollinger Bands expanded, indicating rising volatility.
• A bullish engulfing pattern formed around 0630 ET, aligning with a 61.8% Fibonacci retracement level.
• Turnover surged with the final upward move, suggesting accumulation near recent lows.

DIA/Tether (DIAUSDT) opened at 0.5606 on 2025-10-05 at 12:00 ET, reached a high of 0.575, and a low of 0.5465 before closing at 0.5576 on 2025-10-06 at 12:00 ET. Total volume over the 24-hour period was 750,035.3, with a notional turnover of $418,868. The pair saw a strong bounce from a key 0.5525–0.5535 support zone, followed by a steady upward drift into the session.

Over the last 24 hours, DIAUSDT displayed clear support and resistance levels, with 0.5525 acting as a crucial floor and 0.5650–0.5675 emerging as a key ceiling. A bullish engulfing pattern formed at 0630 ET, suggesting a shift in momentum from bearish to bullish. The 0.5576 close was aligned with the 61.8% Fibonacci retracement of the prior 0.5465–0.5651 swing, reinforcing its significance as a potential continuation level.

Moving averages on the 15-minute chart showed a crossover between the 20SMA and 50SMA during the 0115–0215 ET window, confirming the strength of the recovery. On the daily chart, the 50DMA was above the 100DMA and 200DMA, indicating a generally bearish trend over the longer horizon. Bollinger Bands were in expansion mode, with price closing near the upper band at 0.5685, a sign of high volatility.

The MACD histogram turned positive during the 0115–0300 ET window and stayed above the zero line until the close, reflecting strong bullish momentum. RSI remained in neutral territory (45–60), with no overbought or oversold conditions observed. Price and volume were well-aligned, with spikes in volume confirming key price moves, particularly after 0115 ET. Divergences were not observed during the 24-hour period, suggesting a strong alignment between price and sentiment.

The Fibonacci retracement levels on the 15-minute chart suggested that 0.5525 (38.2%) and 0.5576 (61.8%) were critical in determining the direction. The price held above the 0.5525 level, and the 61.8% level at 0.5576 acted as a psychological target and confirmation of a potential continuation. A breakdown below 0.5525 could trigger further tests at 0.5488, while a push above 0.5635 might indicate a broader reversal in the 15-minute timeframe.

Backtest Hypothesis

Based on the 15-minute chart structure, a potential backtesting strategy could involve entering long positions at the close of bullish engulfing patterns that form at or near Fibonacci 61.8% retracement levels, with stop-loss placed just below the pattern’s low and a target set at the 78.6% or 100% Fibonacci level. This approach was validated by the 0630 ET candle, which closed at 0.5589, confirming a bullish reversal from the 0.5576 retracement level. A similar pattern forming at 0215 ET also led to a short-term upward drift. The strategy could be further refined by including RSI above 45 and a positive MACD crossover as entry filters.