Market Overview: IQ/Tether (IQUSDT) on 2026-01-03

Summary
• Price tested key resistance at 0.001628 with mixed momentum signals.
• Volatility surged in early trading, expanding Bollinger Bands by 15%.
• RSI remained neutral around 50, avoiding overbought/oversold extremes.
• Volume spiked during the 22:15–22:30 ET rally, confirming bullish pressure.
• A bullish engulfing pattern formed near 0.001594 during early morning trading.

At 12:00 ET on 2026-01-03, IQ/Tether (IQUSDT) opened at 0.001598, peaked at 0.001632, and closed at 0.001608. Total volume traded was 61,553,662.0, with a turnover of 96,847.57. Price traded within a narrow range late in the session after early morning consolidation.

Structure & Formations

Price found strong resistance at 0.001628–0.001632 during the overnight session, with multiple attempts to reclaim that level failing after 04:00 ET. . A bullish engulfing pattern formed near 0.001594 following a consolidation phase, suggesting potential short-term buying interest. However, price failed to close above 0.001616, indicating limited follow-through momentum.

Moving Averages

The 20- and 50-period moving averages on the 5-minute chart remained closely aligned, suggesting an absence of strong directional bias in the short term. On the daily chart, price remained above the 50- and 100-period lines but below the 200-period, indicating a mixed medium-term setup with potential for bullish continuation if higher timeframe averages begin to converge.

Momentum Indicators

MACD showed a narrow histogram with a near-zero signal line, reflecting a balance between bullish and bearish momentum. RSI fluctuated between 45 and 55 for most of the session, avoiding overbought or oversold territory. This neutral reading suggests price could break either direction depending on next-day catalysts.

Bollinger Bands

Bollinger Bands expanded during the morning surge, reaching a width of ~0.000014 at 22:30 ET. Price remained within the upper band for much of the day but failed to close above it. This pattern suggests elevated volatility without a clear breakout.

Volume and Turnover

Volume spiked during the 22:15–22:30 ET rally, peaking at over 13 million contracts traded, coinciding with a 0.000006 upward move. Turnover also rose sharply during the same period, reinforcing the bullish bias. However, volume waned in the final hours, suggesting a potential pause in aggressive buying.

Fibonacci Retracements

The 5-minute chart shows a key 61.8% retracement level at 0.001612–0.001616, which was tested and held during the session. A failed attempt to push above that level suggests that short-term buyers may be cautious ahead of further accumulation. The 38.2% retracement at 0.001602–0.001606 remains a key support zone.

Over the next 24 hours, a retest of 0.001628 could be a key event to watch. If bulls fail to reclaim that level, price may consolidate between 0.001602 and 0.001616. Investors should remain cautious for a potential breakdown below 0.001601, which could trigger a short-term bearish correction.