Market Overview for Enzyme/Tether (MLNUSDT): Volatility and Reversal Signals Emerge

• MLNUSDT opened at $7.92 on 2025-09-16 and closed at $7.88 on 2025-09-17 after hitting a high of $8.04 and a low of $7.86.
• Price action featured a bullish break and retest of 7.95–7.98 and a bearish breakdown below 7.93 later in the session.
• Volume surged near key levels, with 7.93–7.96 showing the most aggressive buying and selling.
• RSI signaled overbought conditions above 7.98 and oversold below 7.89, suggesting potential reversals.
• Volatility expanded between 03:30–05:00 ET, coinciding with a sharp pullback from $8.04 to $7.90.

The Enzyme/Tether pair (MLNUSDT) opened at $7.92 on 2025-09-16 and closed at $7.88 on 2025-09-17, with a session high of $8.04 and a low of $7.86. The 24-hour volume totaled 31,510.61 USDT, with a notional turnover of approximately $246,417. Price action was defined by a bearish breakdown after a short-lived bullish push in early morning hours.

Structure & Formations

Key support levels emerged at $7.92 and $7.89, with the latter showing a consolidation of bearish momentum. The 15-minute chart revealed a series of engulfing patterns and long lower shadows between 05:00 and 06:00 ET, indicating potential short-covering and bearish exhaustion. A notable bearish pinbar appeared at $7.90, signaling a possible short-term bottom. Resistance remained intact at $7.95–$7.97, with several failed breakouts observed.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart converged around $7.93–$7.94, providing a dynamic support zone that held late into the session. On the daily chart, the 50-period MA at $7.91 and 200-period MA at $7.87 suggest a potential support range for the next 24–48 hours. Price appears to be forming a potential golden cross as the 50 MA approaches the 200 MA from below.

MACD & RSI

The RSI oscillated between overbought and oversold levels, with a peak at $8.04 and a trough at $7.86. The momentum waned after 05:00 ET, aligning with the bearish breakdown. The MACD line crossed the signal line in the negative territory, reinforcing the bearish bias. Divergence between price and RSI was observed after 09:00 ET, suggesting the potential for a near-term reversal or consolidation.

Bollinger Bands

Volatility expanded significantly during the sharp selloff between 03:30 and 05:00 ET, pushing the price beyond the upper and lower bands. Price subsequently returned to the central band, consolidating around $7.92–$7.94. This contraction suggests a potential setup for a breakout or breakdown in the next 24 hours, depending on volume and order flow.

Volume & Turnover

Volume spiked around the $7.95–$7.98 and $7.90–$7.92 levels, indicating strong participation from both buyers and sellers. Notional turnover aligned with price action, confirming key turning points such as the breakdown at $7.92 and the failed rebound at $7.96. A divergence in volume and price was observed during the late bearish phase, with decreasing volume as the price declined, hinting at potential exhaustion.

Fibonacci Retracements

Applying Fibonacci retracement levels to the 03:30–05:00 swing (from $8.04 to $7.86), the 38.2% level at $7.95 and the 61.8% at $7.90 coincided with key areas of consolidation. On the daily chart, the 61.8% retracement level from the recent high to low aligns with the 50-period MA, suggesting a potential confluence of support and trend alignment.

Backtest Hypothesis

The backtest strategy under consideration involves entering a long position at the close of a bullish engulfing pattern forming above the 20-period MA, with a stop loss set below the recent swing low and a target aligned with the next Fibonacci level. This setup was observed in the 04:00–05:00 ET window, where a bullish engulfing pattern formed at $7.95. The strategy assumes that a break above 7.95 with increasing volume will likely lead to a retest of 7.98–7.99, with a stop loss placed below 7.93. If confirmed, this could offer a risk-reward profile of 1:1.5, aligning well with the current volatility environment.