Market Overview for Liquity/Tether USDt (LQTYUSDT)

• LQTYUSDT opened at $0.796 and closed at $0.790 with a high of $0.809 and a low of $0.789.
• The price formed a bearish exhaustion pattern toward the end of the 24-hour period.
• Volume spiked at key resistance levels but failed to confirm bullish momentum.
• RSI showed overbought conditions early, followed by a sharp correction into oversold territory.
• Bollinger Bands widened during the early hours, indicating increased volatility.

Liquity/Tether USDt (LQTYUSDT) opened at $0.796 on September 5, 2025 at 12:00 ET, reaching a high of $0.809 before falling to a low of $0.789 and closing at $0.790 at 12:00 ET the next day. The 24-hour notional volume totaled 531,537.9 USD, based on a total volume of 659,693.2 LQTY.

Structure & Formations

Price formed a series of bearish continuation patterns, including a bearish engulfing pattern at the high of $0.809, followed by a long upper shadow and a lower close, signaling rejection of that level. A doji appeared near $0.790, suggesting a potential short-term equilibrium point. Key support levels include $0.790 and $0.789, while resistance is at $0.802 and $0.805.

Moving Averages

On the 15-minute chart, price broke above the 20 and 50-period SMAs early in the session, but failed to hold above the 50-period line. The 50-period line on the daily chart is at $0.802, and the 200-period line at $0.800, indicating that the market has entered a potential bearish correction phase from a multi-day perspective.

Backtest Hypothesis

The backtesting strategy focuses on using the 50-period SMA on the 15-minute chart as a dynamic support/resistance level, combined with RSI levels above 70 as a sell signal and below 30 as a buy signal. This approach is designed to capture short-term momentum shifts in a volatile market. When price breaks below the 50-period SMA after an overbought RSI condition, it may signal a high-probability sell entry. Conversely, a rebound from a key support level with RSI below 30 could justify a buy setup. This aligns with the observed bearish engulfing patterns and RSI divergence seen in the 24-hour period.

MACD & RSI

The MACD line crossed below the signal line early in the session, confirming a bearish bias. RSI reached overbought levels at 70 early on, then corrected sharply into oversold territory by the close, reaching as low as 30. The divergence between RSI and price during the final hours indicated weakening bearish momentum, which could support a short-term bounce.

Bollinger Bands

Bollinger Bands widened during the morning hours, indicating increased volatility around the $0.800–$0.810 range. Price spent the evening within the bands but failed to break above the upper band. The contraction of the bands late in the session may foreshadow a potential breakout or false move.

Volume & Turnover

Volume spiked at $0.809 and $0.805, suggesting selling pressure at key resistance levels. Notional turnover confirmed the strength of the bearish trend, with larger volumes observed during the sell-off. However, the lack of follow-through buying at the lower end of the range suggests weak conviction on the buy side.

Fibonacci Retracements

Applying Fibonacci levels to the $0.789–$0.809 range, key levels include 38.2% at $0.796 and 61.8% at $0.793. Price tested the 61.8% level during the session, bouncing off it briefly before continuing lower. On a daily basis, the 38.2% retracement from the previous swing high is at $0.799, which may serve as a near-term resistance if the market corrects.

Looking ahead, LQTYUSDT may attempt to find stability around $0.790, with a possible rebound from this support level. However, a break below $0.789 could accelerate the bearish momentum. Investors should remain cautious of increased volatility and potential false breakouts near key levels.