Market Overview: Loopring/Tether (LRCUSDT) 24-Hour Technical Summary

• Loopring/Tether (LRCUSDT) closed near the 24-hour low at 0.0864 after a bearish reversal following a sharp intraday pullback.
• Volatility expanded in early hours, with price testing 0.092 before declining over 5% into the overnight session.
• On-balance volume skewed toward selling pressure post-19:00 ET, with a divergence between price and turnover near 0.09.
• RSI entered oversold territory below 30, hinting at potential for near-term countertrend bounce.
• A key support level formed around 0.086, with a 61.8% Fibonacci retracement aligning with 0.0875.

24-Hour Price Action and Volume

Loopring/Tether (LRCUSDT) opened at 0.0896 at 12:00 ET on October 3, 2025, and traded as high as 0.092 before declining to a 24-hour low of 0.0859 by 15:00 ET. At 12:00 ET on October 4, the pair closed at 0.0864. Total volume over the 24-hour window was 9,784,501 LRC, with a notional turnover of $863,866 (based on 1 LRC ≈ $0.09 average). Price action reflects a bearish reversal pattern following a volatile breakout attempt from earlier support levels.

Structure & Key Levels

The price formed a bearish reversal structure after a brief rally from 0.086–0.092, marked by a series of bearish engulfing patterns between 01:00 and 05:00 ET. A key support level appears to have formed around 0.086, with a 61.8% Fibonacci retracement aligning with 0.0875, offering a potential target for short-term bounces. Resistance above 0.09–0.0905 may reappear as a near-term ceiling if the rally lacks strong volume.

Volatility and Momentum

Bollinger Bands reflected an initial volatility expansion during the 01:00–05:00 ET consolidation phase, with price sitting below the lower band at 0.086–0.0865 by 09:00–10:00 ET, signaling oversold conditions. RSI dipped below 30, indicating a potential near-term bounce. However, MACD remained bearish with a flattening histogram, suggesting that any rally may lack conviction. The price-volume divergence near 0.09 suggests a failure to confirm bearish momentum.

Backtest Hypothesis

The described backtesting strategy involves a short bias triggered by a bearish engulfing pattern followed by a closing below the 20-period EMA. Given today's candlestick formation and confirmation of a breakdown from 0.092, this condition was met during the 04:00–05:00 ET window. A trailing stop-loss at 0.0875 and a profit target at 0.0850 could have been employed. This approach would align with the observed bearish divergence in volume and RSI, offering a risk-reward ratio of 1:1.5.

Forward-Looking Perspective

In the next 24 hours, a test of 0.085–0.086 is likely, with a potential rebound if RSI shows signs of divergence. A break above 0.0885 may indicate a temporary pause in the downtrend. Traders should remain cautious of low liquidity periods and avoid overcommitting long positions without confirmation above 0.09.