Market Overview for Enzyme/Tether (MLNUSDT): 2025-10-09 24-Hour Technical Summary

• MLNUSDT dipped sharply below $7.80 amid high-volume selling into the early hours of 2025-10-09.
• A strong bearish engulfing pattern formed on the 15-min chart near $7.92, confirming a key reversal in sentiment.
• Volatility expanded sharply after the 02:45 ET candle, with price dropping from $7.81 to $7.72 on a high-volume candle.
• RSI entered oversold territory below 30 during the morning Asian session, suggesting a potential rebound.
• Bollinger Bands tightened pre-08:00 ET before exploding lower, signaling a breakout in a downtrend.

Market Summary

The Enzyme/Tether (MLNUSDT) pair opened at $7.83 on 2025-10-08 at 12:00 ET, reached a high of $7.96 before peaking at 06:45 ET, and closed at $7.79 as of 12:00 ET on 2025-10-09. The 24-hour low was recorded at $7.66. Total traded volume for the period was 30,280.60 units, with a notional turnover of $229,918.52, indicating strong activity especially during the sharp decline in the early hours of October 9.

Structure & Formations

Price action displayed a clear bearish bias, with a key support level forming at $7.70–$7.72 following the 08:45–09:00 ET candles. A bearish engulfing pattern appeared at $7.92 on 19:45–20:00 ET, confirming a short-term reversal after earlier resistance at $7.95–$7.96 failed to hold. A doji at $7.80 on 02:15 ET hinted at indecision, but was followed by a large bearish candle breaking below key support.

Moving Averages

On the 15-minute chart, the 20-period and 50-period EMAs crossed below key swing lows during the early morning hours, reinforcing the bearish momentum. On the daily chart, the 50-EMA at $7.85 and the 200-EMA at $7.90 acted as resistance, with price closing well below both lines. The 100-EMA at $7.88 also failed to provide support during the late-night sell-off.

MACD & RSI

The MACD line turned sharply negative post 03:00 ET, with the histogram showing deep bearish divergence. RSI dropped to 28–29 during the 07:30–08:30 ET period, suggesting oversold conditions. However, the absence of a bounce from that level raised concerns about further downward pressure.

Bollinger Bands

Bollinger Bands narrowed significantly between 01:00–03:00 ET before exploding lower, confirming a breakout in the short-term downtrend. The price closed below the lower band on the 08:45–09:00 ET candle, suggesting a continuation of bearish momentum. The expansion of the bands also indicated increased volatility during the critical sell-off.

Volume & Turnover

Volume surged during the 02:45–03:00 ET candle with a notional turnover of $10,153, matching a sharp 9-cent drop to $7.72. The subsequent rebound from $7.72 to $7.79 was supported by moderate volume, suggesting a possible short-covering rally. Divergence appeared between price and volume from 10:00–12:00 ET, as volume decreased despite a small recovery, hinting at a lack of conviction in the upside.

Fibonacci Retracements

The 02:45–03:00 ET move from $7.81 to $7.72 identified key Fibonacci levels at 38.2% ($7.77), 50% ($7.765), and 61.8% ($7.76). Price found temporary support at $7.77 during the 11:15–11:30 ET rebound before retracing again. On the daily chart, the 50% Fib of the previous week's high-low range is at $7.80, aligning with the recent support zone.

Backtest Hypothesis

Given the recent formation of a bearish engulfing pattern and the confirmation via RSI divergence and volume spikes, a backtesting strategy could be built around shorting on a close below key Fibonacci support levels, with a stop above the prior swing high. For example, a short could be triggered on a close below $7.76 (61.8% Fib level), with a stop-loss set above $7.82 (a prior resistance and 38.2% Fib level). The target would be the next Fibonacci level at $7.71, offering a risk/reward ratio of roughly 1:0.5. This aligns with the observed bearish breakout and can be tested on similar 15-minute patterns observed in the dataset.