Market Overview for Liquity/Tether (LQTYUSDT)

• LQTYUSDT declined sharply from 0.874 to 0.858 in early ET hours, indicating strong downward momentum.
• A 15-minute bearish engulfing pattern formed around 2025-09-13 17:15 ET as price collapsed from 0.863 to 0.851.
• Volatility spiked mid-ET session, with price range expanding over 0.020, while turnover surged past $327k in the 01:15 ET hour.
• RSI entered oversold territory below 30 for a brief period but failed to trigger a sustained bounce.
• Price appears to be consolidating near 0.858-0.860, with potential support at 0.855-0.857.

LQTYUSDT opened at 0.874 on 2025-09-13 at 12:00 ET and closed at 0.858 as of 2025-09-14 at 12:00 ET, with a low of 0.851 and a high of 0.875. Total 24-hour trading volume amounted to 724,460.9 units, while notional turnover reached approximately $615,000.

Structure & Formations

The 15-minute chart shows a bearish reversal pattern emerging from late afternoon to early evening ET. A key 15-minute bearish engulfing candle at 17:15 ET marked a turning point in the session’s downward leg. A minor support level appears to be forming near 0.855–0.858, which has been tested multiple times and partially held. The 0.871–0.872 zone may serve as a near-term resistance if buyers return. A doji formed at 05:15 ET near 0.858, suggesting indecision following the earlier bearish trend.

Moving Averages

The 15-minute chart shows price below both the 20 and 50-period moving averages, reinforcing the bearish bias in the short term. On the daily chart, the 50, 100, and 200-day moving averages (not included in the 15-min dataset) are likely aligned in a downtrend, with LQTYUSDT trending below the 200-day MA. This reinforces the notion that the pair remains in a medium-term bear phase, with a potential bounce to test the 20 and 50-period lines on the 15-min chart if short-term buyers emerge.

MACD & RSI

The MACD for the 15-minute chart showed a bearish crossover in the late afternoon, confirming the downward shift. RSI reached oversold territory around 0.855–0.857 but did not generate a clear rebound, indicating potential bearish exhaustion at lower levels. However, the failure to rally above 0.863 could signal that sellers remain active. A sustained close above 0.868 would likely trigger a shift in RSI and MACD to neutral or bullish territory.

Bollinger Bands

Bollinger Bands on the 15-minute chart widened significantly between 17:00 and 19:00 ET, coinciding with the sharp price drop from 0.865 to 0.858. This suggests increased volatility and uncertainty in the market. Price has since consolidated near the lower band, indicating potential for a countertrend bounce. If the lower band remains intact, a test of the 0.855–0.857 level could follow, with a break below that range suggesting a further decline toward the 0.850–0.845 zone.

Volume & Turnover

Volume spiked during the sharp decline, especially between 17:00 and 01:15 ET. The highest notional turnover occurred at 01:15 ET, with $327k traded during that 15-minute period. Despite the significant sell-off, the volume did not confirm a strong reversal signal, as price failed to rebound off the oversold RSI levels. The divergence between high volume and lack of follow-through buying suggests that the bearish phase may not have concluded yet.

Fibonacci Retracements

Applying Fibonacci retracements to the key 15-minute swing from 0.851 to 0.875 shows that the 0.864 level aligns with the 38.2% retracement, and 0.868 aligns with the 61.8% retracement. The current consolidation near 0.858 suggests that the next potential bounce could target the 0.861–0.864 zone. If the 61.8% level holds, this could be a key area to watch for a potential reversal.

Backtest Hypothesis

A possible backtest strategy involves entering a long position on a bullish candle that closes above the 38.2% Fibonacci retracement level (0.864) with confirmation from RSI entering neutral territory and volume increasing. A stop-loss would be placed below the 0.860 level, with a target at the 61.8% retracement at 0.868. This approach could help identify a potential reversal in the current bearish phase, while mitigating risk with tight stops based on recent volatility and volume patterns. Given the current price action, this setup could be tested in the coming hours if buyers step in at support levels.