Market Overview for Injective/Tether (INJUSDT)

Summary
• Injective/Tether (INJUSDT) experienced a choppy 24-hour session with bearish and bullish swings.
• Price dipped to 6.03 before a late recovery pushed it back to 6.66 ahead of the 12:00 ET close.
• Elevated volume during the bounce suggests strong buying pressure but lacks consolidation.
• RSI and MACD show mixed momentum, with RSI near overbought territory suggesting potential pullback.
• Bollinger Bands indicate a moderate expansion in volatility during the rally.

Injective/Tether (INJUSDT) opened at $6.66 on 2025-11-04 at 12:00 ET and closed at $6.66 at 12:00 ET the next day. The 24-hour period saw a high of $6.74 and a low of $6.03, with total volume traded at 2,024,564.77 INJ and a notional turnover of approximately $13,487,827.37. The price action displayed a strong mid-day correction and a late recovery, driven by increased volume in the final hours.

The 15-minute chart highlights a key support zone forming between $6.40 and $6.45, where the price found buying interest multiple times. A bearish engulfing pattern was visible at 17:15 ET, signaling a potential short-term reversal. However, bullish momentum returned in the early hours of 2025-11-05, with a series of higher highs and closes suggesting a possible short-term reversal. The 20-period moving average showed a gradual upward drift, while the 50-period line remained flat to slightly bearish, indicating mixed signals for short-term direction.

MACD showed a bullish crossover in the final hours of the session, with the histogram expanding positively, indicating renewed upward momentum. RSI reached overbought levels near 70 during the last few hours, hinting at potential exhaustion in the bullish move. The 50-period RSI indicated a moderate uptrend, while the 20-period RSI displayed a sharp increase during the recovery phase. Bollinger Bands showed a moderate expansion during the late-day rally, with prices bouncing off the lower band earlier in the session and closing near the upper band, suggesting increased volatility.

Fibonacci retracement levels from the $6.03 low to the $6.66 close indicated the 61.8% level at around $6.39 as a potential support zone, which the price tested twice. The 38.2% level at $6.52 was also a significant area of consolidation. Volume during the 15-minute intervals showed spikes during key reversal moments, especially between 20:30 ET and 22:30 ET, where large bullish volume confirmed the recovery. This volume divergence between price and turnover suggests strong institutional participation during key moves, reinforcing the validity of the price action.

Backtest Hypothesis
The backtest strategy in question relies on identifying and acting on the Bullish Engulfing pattern, a candlestick formation that typically signals a short-term reversal from bearish to bullish momentum. Over the 15-minute INJUSDT chart, such patterns can act as entry triggers for a 24-hour holding period. Given the recent price action, including multiple confirmations of bullish volume and price divergence at key support levels, a successful backtest would need to account for a few factors. First, the accuracy of detecting the Bullish Engulfing pattern must be high to avoid false signals. Second, the timing of the entry—ideally at the close of the engulfing candle—should be paired with a clear stop-loss or trailing mechanism. Lastly, since the 24-hour holding period may expose the trade to overnight liquidity risks, the strategy should be tested for performance under varying volatility regimes.