Market Overview for Illuvium/Tether (ILVUSDT)

Summary
• Price formed a bullish engulfing pattern at 5.62 after testing key support levels.
• RSI signaled overbought conditions near 5.7, followed by a pullback and bearish divergence.
• Volatility expanded as Bollinger Bands widened with increased volume in the final hours.

Illuvium/Tether (ILVUSDT) opened at $5.50 at 12:00 ET–1, reached a high of $5.72, and closed at $5.55 at 12:00 ET, with a low of $5.50. Total volume for the 24-hour window was approximately 20,073.99 ILV, and notional turnover was roughly $112,202.

Market Overview
Price action revealed a complex 24-hour session marked by a strong midday rally into $5.70, followed by a consolidation phase and eventual pullback. The bullish momentum was evident with an engulfing pattern forming near $5.62, which followed a failed test at key support around $5.55. The 20-period and 50-period moving averages on the 5-minute chart crossed positively during the rally, reinforcing the short-term bullish bias.

Structure & Formations
A strong bearish engulfing pattern was observed at 5.64–5.62, signaling potential exhaustion in the bullish move. A doji at $5.66 reflected indecision. The price found support at the 38.2% Fibonacci retracement level of the earlier rally, suggesting a potential base for further consolidation.

Moving Averages and Momentum
The 50-period moving average on the 5-minute chart crossed above the 20-period line in the afternoon, confirming a short-term bullish bias. However, the RSI reached overbought levels near 5.7 and diverged as price declined without a proportional fall in RSI, hinting at potential bearish reversal.

Bollinger Bands and Volatility
Bollinger Bands expanded significantly in the late hours of trading, indicating rising volatility. Price spent a large portion of the session in the upper half of the bands, especially during the midday rally, before retreating into a tighter range as the session ended.

Volume and Turnover
Volume spiked during the midday push toward $5.70, with a 5-minute candle at $5.67 recording over 991.68 ILV traded. Turnover diverged slightly in the last 4 hours, with decreasing volume despite a sideways price action, indicating reduced conviction in the current trend.

Over the next 24 hours, ILVUSDT may retest the 5.64–5.66 range as potential resistance, with a possible breakdown below $5.55 if bearish momentum intensifies. Investors should remain cautious as overbought conditions and bearish divergence may lead to increased short-term volatility.