Market Overview for Liquity/Tether (LQTYUSDT) – 24-Hour Analysis

• Price surged to 0.694 before correcting to 0.68 by end of day
• Key resistance appears at 0.691, with support forming at 0.68
• High volume confirmed breakout attempts but failed to sustain
• RSI overbought conditions reversed as momentum waned
• Bollinger Band contraction suggests potential for a breakout or breakdown

Liquity/Tether (LQTYUSDT) opened at 0.676 on 2025-09-26 at 12:00 ET and reached a high of 0.694 before closing at 0.68 on 2025-09-27 at 12:00 ET. Total volume was 738,868.6 and notional turnover reached 505,829.95. Price exhibited volatile swings, suggesting mixed buyer and seller control throughout the day.

Structure & Formations

Price found resistance at 0.691 during the late afternoon, forming a bearish dark cloud cover pattern as buyers failed to hold above this level. A notable bullish engulfing pattern appeared around 18:30 ET, which briefly reversed the trend toward higher prices. However, this rally was short-lived, with a larger bearish engulfing pattern confirming renewed selling pressure. A doji near 0.683 at 17:30 ET suggests indecision between buyers and sellers, signaling a potential turning point.

Moving Averages

On the 15-minute chart, the 20-period SMA crossed above the 50-period SMA in the early evening session, signaling a temporary bullish bias. However, by the end of the 24-hour period, the 20 SMA had crossed back below the 50 SMA, confirming bearish momentum. For the daily chart, the 50-day SMA remains above the 100 and 200-day SMAs, indicating a longer-term bullish trend, though short-term bearish divergences may persist.

MACD & RSI

MACD showed a bearish crossover as the line dipped below the signal line in the late hours of the session. This coincided with RSI hitting overbought conditions (75) around 19:30 ET before dropping sharply into neutral territory. The divergence between rising price and declining RSI suggests potential for a pullback. By the end of the day, RSI was back within balanced levels, suggesting exhaustion in both bullish and bearish momentum.

Bollinger Bands

Bollinger Band contraction occurred between 19:00 and 21:00 ET, indicating a period of low volatility. This was followed by a sharp expansion, with price breaking below the lower band after 21:30 ET. The price remained near the lower band for most of the session, suggesting bearish bias and potential oversold conditions. A break above the upper band might trigger a short-term rally.

Volume & Turnover

The highest volume candle occurred at 18:45 ET, with 71,288.1 units traded, coinciding with a significant price drop from 0.696 to 0.689. This confirmed bearish control at the time. Notional turnover surged alongside this volume, indicating significant capital movement. Divergences occurred later in the session, where volume dropped despite price movement, suggesting reduced conviction among traders. Overall, volume trends supported the bearish bias seen in the closing hours.

Fibonacci Retracements

Applying Fibonacci retracement levels to the swing high at 0.694 and the low at 0.676, the 38.2% retracement level is at 0.689 and the 61.8% level at 0.683. Price bounced off the 61.8% level twice during the session, reinforcing its significance as a support area. If the trend continues, a test of the 50% level at 0.685 may provide insight into the next directional bias.

Backtest Hypothesis

A potential backtesting strategy could involve using the 20/50-period moving average crossover on the 15-minute chart as a trigger, combined with RSI divergence for confirmation of trend exhaustion. For example, a bullish signal would be generated when the 20 SMA crosses above the 50 SMA, and RSI shows a bullish divergence (rising price with RSI at a higher low). Conversely, a bearish signal would be triggered when the 20 SMA crosses below the 50 SMA and RSI shows a bearish divergence. Stop-loss could be placed at the nearest Fibonacci support or resistance level, with a take-profit target at the next major retracement level or breakout threshold.