Summary
• Price opened at $0.421, declined to $0.411, and closed near $0.416 on heavy volume.
• A bearish breakdown below key support at $0.415 triggered further losses into the session low.
• Momentum weakened as RSI dipped below oversold levels, but volume diverged, suggesting lingering bear pressure.
• Volatility expanded during the drop, with prices breaching lower Bollinger Band for sustained periods.
• A large volume spike at $0.413 marked a key area of selling pressure, reinforcing short-term bearish sentiment.
Liquity/Tether (LQTYUSDT) opened at $0.421 on 2025-12-16 12:00 ET, peaked at $0.422, and closed at $0.416 by 2025-12-17 12:00 ET. The pair dipped to a low of $0.411 amid a bearish breakdown. Total volume reached 776,171.1, with notional turnover hitting $318,555.1, reflecting heightened selling pressure.
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Structure & Formations
Price action displayed a bearish breakdown as it fell below $0.415, forming multiple bearish engulfing patterns and a long lower shadow at $0.411. A large volume spike at $0.413 suggests aggressive liquidation or stop-loss triggering.
The price found a temporary floor near $0.406 before a modest rebound, hinting at potential support in that area.
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Technical Indicators
The 20-period and 50-period moving averages on the 5-minute chart both turned lower mid-session, reinforcing bearish momentum. MACD turned negative in the afternoon, while RSI fell below 30, indicating oversold conditions. However, volume did not confirm a bounce, suggesting further downside could follow. Volatility expanded as price dipped below the lower Bollinger Band for much of the afternoon and evening.
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Fibonacci & Volume Analysis
From the $0.422 high to the $0.411 low, the price retraced 38.2% at $0.417 and 61.8% near $0.413. A strong bearish divergence between price and volume is visible in the $0.415–$0.413 range, where price dropped but volume remained high, signaling continued selling pressure. Turnover surged during the afternoon break below $0.415, supporting the view that key institutional or algorithmic participants were involved.
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Outlook and Risk
Price appears to have broken below key short-term support, with the $0.411–$0.413 range forming a potential near-term floor. A recovery to test $0.417–$0.418 could face resistance from failed support-turned-resistance. However, if bears regain control, the next level to watch is $0.408. Investors should monitor for a potential rebound or continued breakdown in the next 24 hours, with a caution that increased volatility and volume may trigger further short-term swings.
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