Market Overview for Illuvium/Tether (ILVUSDT)

Summary
• Price declined sharply from $7.16 to $6.60, breaching key support levels and forming bearish engulfing patterns.
• Momentum weakened with RSI below 30, suggesting oversold conditions but no immediate reversal sign.
• Volatility expanded as Bollinger Bands widened, with volume surging during the downward move.
• Turnover spiked over $100k during key breaks, affirming bearish conviction.
• 61.8% Fibonacci retracement from the $7.16 high aligns with current price, indicating potential for further downside.

Illuvium/Tether (ILVUSDT) opened at $6.99 on 2026-01-17 at 12:00 ET, reached a high of $7.21, and closed at $6.60 at 12:00 ET on 2026-01-18. The price dropped to a 24-hour low of $6.56. Total volume traded was approximately 152,362.95, with notional turnover exceeding $1,070,000.

Structure & Formations

Price experienced a significant bearish breakdown from the $7.16 high, forming bearish engulfing patterns around key resistance levels. A notable doji appeared near $7.05, indicating indecision before the selloff. Key support levels were pierced, with a strong move below $7.00 confirming bearish momentum.

Moving Averages

Short-term moving averages on the 5-minute chart (20/50) crossed below key price levels as the selloff accelerated. On the daily chart, price closed well below the 50-, 100-, and 200-day averages, reinforcing the bearish bias and signaling further potential for corrective moves.

Momentum & Volatility

MACD turned negative with bearish divergence, while RSI dipped below 30, indicating oversold conditions. Bollinger Bands expanded during the selloff, reflecting heightened volatility. Price tested the lower band multiple times, especially around the $6.60 level.

Volume & Turnover

Volume spiked during the critical breakdown below $7.00, with heavy notional turnover observed during the key 5-minute intervals around 21:00 and 00:00 ET. Price and turnover moved in alignment, confirming bearish pressure.

Fibonacci Retracements

A 61.8% Fibonacci retracement level from the $7.16 high aligns with the current price level. This suggests a potential short-term floor, though further downside into the 78.6% level ($6.39) could be possible if bearish momentum continues.

Looking ahead, ILVUSDT may test the $6.60 level again in the next 24 hours, with a potential bounce possible if buyers step in. However, a break below $6.56 could open the path to $6.39. Investors should be cautious of further downside risks amid bearish momentum and oversold conditions.