Market Overview for Loopring/Tether (LRCUSDT) on 2025-10-11

• LRCUSDT dipped to 0.0692 on 2025-10-11 after a sharp selloff from 0.0845, with RSI near oversold territory.
• Volatility spiked post 19:00 ET, with Bollinger Bands expanding significantly.
• Volume surged past 3 million near the bottom, confirming a potential short-term support zone.
• Momentum indicators suggest a possible near-term rebound, though a break below 0.0685 could trigger further declines.

Opening and Price Action Summary

Loopring/Tether (LRCUSDT) opened at 0.0837 on 2025-10-10 12:00 ET, reached a high of 0.0845, and fell to a low of 0.0488 before closing at 0.0698 on 2025-10-11 12:00 ET. The 24-hour trading session saw a total volume of 68,932,440.0 and a turnover of approximately 4,954,850.85 USD, indicating heightened volatility and significant price swings.

Structure and Key Levels

The price formation showed a bearish engulfing pattern from 19:30 to 20:00 ET, followed by a sharp decline toward 0.0488. A key support area appears to have formed between 0.0685 and 0.0692, evidenced by a volume spike and a series of consolidating candles. Resistance levels at 0.0702 and 0.0717 may cap any near-term upward momentum. A doji appeared at 0.0652, suggesting indecision after the sharp drop.

Technical Indicators and Momentum

The 15-minute MACD crossed below the signal line, reinforcing bearish momentum, while RSI hit a low of 22, signaling oversold conditions. On the daily chart, the 20-period EMA crossed below the 50-period EMA, a bearish sign. Bollinger Bands widened significantly as the price dropped, with the price bouncing back near the lower band at 0.0692. This could signal a potential short-term rebound.

Backtest Hypothesis

The backtesting strategy under consideration leverages the 20-period EMA crossover and RSI-based overbought/oversold thresholds to identify potential reversal points. Given LRCUSDT’s recent action, where the RSI dipped to oversold levels and the price found support near the lower Bollinger Band, this strategy could potentially trigger a long signal if a bullish candle closes above 0.0702 with rising volume. The combination of momentum divergence and confirmed support suggests a high-probability setup for a short-term bounce, aligning well with the backtest framework.