Market Overview: Enzyme/Tether (MLNUSDT) Sees Sharp Rally Amid Strong Volume

• Enzyme/Tether (MLNUSDT) rallied from $7.10 to $7.61 in 24 hours amid growing bullish momentum.
• Price formed a strong bullish engulfing pattern near $7.30 before breaking above key resistance.
• Volatility expanded significantly during the 0345–0515 ET window with above-average volume spikes.
• RSI surged into overbought territory, suggesting potential near-term pullback.
• Bollinger Bands widened during the rally, confirming rising market participation.

Price Action and Key Levels

Enzyme/Tether (MLNUSDT) opened at $7.10 on 2025-09-26 at 12:00 ET and closed at $7.54 at 12:00 ET on 2025-09-27 after reaching a high of $7.61 and a low of $7.10. The pair surged on a 24-hour trading volume of 50,808.74 and notional turnover of $365,165.62. Key support appears to be forming around the $7.30–7.35 range, with resistance strengthening at $7.54–7.60. A large bullish engulfing pattern emerged at $7.30–7.31, signaling renewed buyer interest ahead of the breakout.

Candlestick Patterns and Momentum

Several notable patterns emerged during the session, including a bullish engulfing at 0330 ET and a potential bearish harami at 0900 ET, hinting at consolidation. RSI reached 76 near the session high of $7.61, indicating overbought conditions and increasing the probability of a near-term correction. MACD remained above the signal line with a strong positive divergence, supporting further upside potential if buyers remain active.

Volatility and Trend Confirmation

Bollinger Bands expanded significantly during the 0345–0515 ET rally, indicating rising volatility and a potential continuation of the trend. Price traded near the upper band during the peak of the move but began to consolidate around the middle band after reaching $7.61, suggesting short-term uncertainty. Volume spiked above the 20-period average during the rally, particularly in the 0345–0515 ET window, confirming the strength of the move.

Fibonacci Retracements and Strategic Levels

Fibonacci retracements highlight potential pullback levels at 61.8% (~$7.45) and 78.6% (~$7.38) if the current upward trend breaks. On the 15-minute chart, a strong 38.2% retest at $7.42 could act as a pivot zone for further upside. These levels remain critical for near-term positioning and risk management.

Backtest Hypothesis

A potential backtesting strategy could leverage the identified bullish engulfing pattern at $7.30–7.31, entering long on a breakout above $7.35 with a stop-loss below $7.25. The MACD divergence and RSI overbought levels suggest a trailing stop or take-profit at $7.55–7.60. This approach would align with the observed volume confirmation and the momentum structure, offering a risk-reward ratio of approximately 1:1.25. Given the recent trend, backtesting over similar 15-minute bullish patterns could validate its effectiveness in similar market conditions.