Market Overview: IOTA/Tether (IOTAUSDT) Experiences Selloff Amid Elevated Volume

Summary
• Price broke below key support at 0.1034, forming bearish engulfing patterns.
• Volume surged during the 5-hour decline, confirming downward momentum.
• RSI indicates oversold conditions near 0.0985, suggesting short-term potential for a rebound.

IOTA/Tether (IOTAUSDT) opened at 0.1045 at 12:00 ET − 1, reached a high of 0.1047, and a low of 0.0974, closing at 0.0988 at 12:00 ET. The pair recorded 5.6 million volume and $556,800 in turnover over 24 hours.

Structure & Formations

Price action from 0.1045 to 0.0988 featured several bearish engulfing patterns and a long-legged doji near 0.1006, signaling weak conviction in further upward moves. A critical support level appears to be forming around 0.0985, where price has tested multiple times.

Moving Averages

On the 5-minute chart, price has been below both 20 and 50-period SMAs, confirming a short-term downtrend. Longer-term 50, 100, and 200-period daily averages are not immediately visible in the 5-minute data but would need to be referenced for broader context.

MACD & RSI

The MACD turned negative after 18:00 ET and has remained bearish, suggesting declining momentum. RSI dipped below 20 for the first time in the session, indicating oversold conditions near 0.0985 and hinting at a potential short-term bounce.

Bollinger Bands

Volatility expanded as price dropped from 0.1045 to 0.0974, pushing price to the lower band of the Bollinger Bands. This expansion suggests increased uncertainty, and a contraction may follow if price consolidates near current levels.

Volume & Turnover

Trading volume spiked during the 18:00–21:00 ET sell-off, reaching over 700,000 per 5-minute interval. This volume confirmed the bearish move, while turnover mirrored the price action, showing a sharp decline in value traded during the rebound attempts.

Fibonacci Retracements

The 61.8% retracement level of the key 0.1045–0.0974 move sits near 0.1007, which price approached before resuming the decline. A rebound to this level could offer a near-term resistance and potential reversal signal.

IOTAUSDT appears to be in a short-term bearish phase, with momentum likely to remain pressured in the near term. A consolidation near the 0.0985–0.0990 range could offer a brief reprieve but may not signal a sustainable reversal. Investors should remain cautious as volatility remains elevated and support at 0.0985 could break again.