Market Overview for Loopring/Tether (LRCUSDT): 24-Hour Technical Summary – 2025-10-09

• • LRCUSDT declined 1.5% over 24 hours, closing below key psychological level of 0.09.
• • Strong bearish momentum with RSI near oversold territory, indicating potential for consolidation.
• • Volatility expanded post-18:00 ET before stabilizing, suggesting accumulation or short-covering.
• • Bollinger Bands show recent contraction, hinting at a potential breakout attempt.
• • Volume spiked at 18:00 ET but failed to support a bullish reversal, signaling weak conviction in buyers.

At 12:00 ET on October 8, LRCUSDT opened at 0.0864 and traded as high as 0.0944 before closing at 0.0847 at 12:00 ET on October 9. Total volume for the period was 70,321,912. Total notional turnover reached $6,157,434. The pair exhibited bearish exhaustion with mixed candlestick patterns and a breakdown from key resistance levels.

Structure & Formations

Price action from 18:00 to 22:00 ET showed a sharp rally toward 0.0944, but failed to hold above 0.091, forming a bearish hanging man and shooting star pattern. A bearish engulfing pattern emerged at 22:30 ET as price closed below the prior bar’s body, signaling further risk of continuation. Support levels were evident at 0.0895 (psychological), 0.0883 (daily low), and 0.087 (previous key support).

Moving Averages

On the 15-minute chart, price closed below both the 20- and 50-period SMAs, reinforcing a bearish bias. On the daily timeframe, the 50-period SMA sits at ~0.0915, acting as a strong resistance, while the 200-period SMA (~0.0940) remains distant. The 100-period SMA (~0.0920) is also above the current price, confirming a short-term downtrend.

MACD & RSI

The MACD line turned negative at 20:00 ET, with the histogram narrowing, suggesting weakening momentum. RSI dropped to 29 by 03:00 ET, entering oversold territory, which historically may trigger short-term bounces. However, bearish divergence emerged between price and RSI at 09:00–12:00 ET, raising concerns about a lack of buying interest.

Backtest Hypothesis

Applying a backtesting strategy that combines RSI oversold levels (<30) and a bullish engulfing pattern could offer a short-term trade entry. If LRCUSDT breaks above the 0.0875–0.0880 range with increasing volume and RSI above 40, a pullback setup may present a buy opportunity. Conversely, a breakdown below 0.0840 could signal further risk into 0.0820, with MACD and RSI expected to remain bearish until a reversal is confirmed.

Volatile Expansion and Bollinger Bands

Bollinger Bands widened between 17:45 and 19:30 ET, with price reaching the upper band at 0.0931 before a sharp reversal. The 20-period band width expanded by 12%, indicating increased volatility. By 04:00–08:00 ET, the bands contracted, suggesting a period of consolidation and potential breakout ahead. Price has since remained below the 20-period lower band, reinforcing weak bearish sentiment.

Volume and Turnover Divergence

Despite a rally to 0.0944 at 18:00 ET, volume only accounted for 6.65 million contracts, while the subsequent decline between 19:00 and 21:00 ET saw over 14 million contracts traded. This divergence between price and volume indicates bearish conviction. Turnover reached $6,157,434, with the majority occurring during the 18:00–00:00 ET window, highlighting active distribution.

Fibonacci Retracements and Key Levels

Applying Fibonacci retracements to the 0.0864–0.0944 swing, 0.0905 (38.2%) and 0.0889 (61.8%) levels acted as resistance during the retracement phase. On the daily chart, the 0.0900 (61.8% of the recent downtrend) is now a potential support. If the pair breaks below 0.0838 (61.8% of the 2025-10-09 pullback), further testing of 0.0825 is likely.

Looking ahead, LRCUSDT faces a critical test of 0.0840 as the next support level. A close below 0.0838 could trigger a deeper correction into 0.0820. However, a short-term bounce from oversold RSI and a retest of 0.0875–0.0880 may offer a bullish counter-trend opportunity. Investors should remain cautious and watch for volume confirmation on any upward attempts.