Market Overview for dYdX/Tether (DYDXUSDT) – 2025-09-19

• dYdX/Tether (DYDXUSDT) fell from a 24-hour high of $0.6999 to a low of $0.6606, closing near $0.6633 at 12:00 ET.
• Price broke below key support levels with a long bearish candle on early morning volume.
• Momentum turned sharply negative, with RSI hitting oversold territory and MACD diverging.
• Volatility expanded in the early hours before narrowing in the afternoon.
• Turnover surged during the 0345–0515 ET selloff before fading, confirming bearish exhaustion.

At 12:00 ET on 2025-09-19, dYdX/Tether (DYDXUSDT) opened at $0.6763, hit a high of $0.7124, a low of $0.6606, and closed at $0.6633. Total volume for the 24-hour period was 12,112,480.03 DYDX, while notional turnover reached $8,176,496. The price action has shown a clear bearish breakdown, supported by elevated volume and diverging momentum indicators.

Structure & Formations

Price action over the 24-hour period displayed a distinct bearish bias, with a strong breakdown below the $0.6850 psychological level. A notable bearish engulfing pattern formed between 0345–0400 ET, followed by a long bearish candle on heavy volume that closed near the session low. A key support level appears to be forming at $0.6630–$0.6650, with a doji forming at the 15:00 ET candle on decreasing volume, suggesting potential short-term stabilization.

Moving Averages

On the 15-minute chart, price has remained below both the 20-EMA ($0.6803) and 50-EMA ($0.6841), confirming a short-term bearish bias. On the daily chart, price is trading below the 50, 100, and 200 SMA, reinforcing the broader bearish trend. The divergence between price and the 50 SMA suggests further downside could be in play.

MACD & RSI

The MACD has turned bearish with a negative histogram, while the RSI has dropped into oversold territory at 27. This divergence between price and momentum is typical of a strong short-term selloff. However, the RSI’s position near the oversold level may suggest a potential bounce in the short term, especially if volume decreases.

Bollinger Bands

Volatility expanded significantly during the early morning selloff, with price breaching the lower Bollinger Band at $0.6606. Since then, volatility has contracted, and price is currently trading near the middle band. This suggests a potential reversal point if the price manages to hold above $0.6630, particularly as volume has started to moderate.

Volume & Turnover

The most notable spike in volume occurred during the 0345–0515 ET window, when the price fell from $0.6898 to $0.6685 on a total turnover of $1.8 million. This was followed by a quieter afternoon with lower turnover and smaller candle bodies, suggesting a temporary exhaustion of the selling pressure. Divergences between price and volume were observed in the late hours as price dropped further without a proportional increase in volume.

Fibonacci Retracements

Applying Fibonacci to the key 24-hour swing (high at $0.7124 and low at $0.6606), the 38.2% level is at $0.6888 and the 61.8% level is at $0.6745. Price appears to be consolidating near the 61.8% level, which could act as a short-term pivot for a potential bounce. On the 15-minute chart, a similar retracement level is forming at $0.6633–$0.6650, aligning with the doji and suggesting a possible short-term bottom.

Backtest Hypothesis

The backtest strategy involves entering a short position when price breaks below the 50-EMA on the 15-minute chart with a closing candle volume above the 20-period average and RSI above 60. A stop-loss is placed at the most recent swing high, and a take-profit is set at the nearest Fibonacci retracement level. This strategy appears well-aligned with the recent bearish momentum, particularly the early morning breakdown. However, the recent doji and moderate RSI suggest that the strategy may require a re-entry filter to avoid false signals during short-term bounces.