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Summary
• Price declined from 0.412 to 0.398, forming a bearish engulfing pattern.
• RSI hit oversold territory, while volume increased sharply during the downward move.
• Volatility expanded as price moved outside Bollinger Bands, with 0.405 acting as key support.
• MACD showed bearish crossover and negative divergence with price.
Liquity/Tether (LQTYUSDT) opened at 0.400 on 2026-01-06 12:00 ET, reached a high of 0.415, a low of 0.391, and closed at 0.398 by 12:00 ET on 2026-01-07. Total volume was 724,753.5 units with a turnover of $297,728.
Structure & Formations
Price action revealed a bearish engulfing formation around 0.402-0.400 and a doji at 0.397. Key support levels appear at 0.405 (tested multiple times) and 0.396, while resistance is seen at 0.408 and 0.412.
Moving Averages and Momentum

Volatility and Bollinger Bands
Volatility expanded as price moved outside the upper and lower Bollinger Bands during key swing moves, particularly from 0.409 to 0.391. This suggests increased uncertainty and potential for range-bound action in the near term.
Volume and Turnover Analysis
Volume surged during the downward push from 0.412 to 0.398, confirming bearish momentum. Turnover diverged slightly from price around 0.408-0.406, suggesting possible near-term stabilization.
Fibonacci Retracements
Key Fibonacci levels from the swing high at 0.412 to the low at 0.391 include 38.2% (0.403) and 61.8% (0.396). Price found support at 0.405 and could test 0.396 if the bearish trend continues.
The market may find near-term support at 0.396 or face a short-term bounce from 0.405. Investors should remain cautious ahead of potential volatility as the 0.405 level is tested again.
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