Market Overview for MultiversX/Tether (EGLDUSDT) as of 2025-11-06

• Price declined from $8.61 to $8.01, breaking key support levels.• Volume surged during the late session, signaling increased bearish activity.• RSI hit oversold territory, suggesting possible short-term reversal.• Bollinger Bands widened, confirming increased volatility.• A bearish engulfing pattern formed near $8.60, validating the downward trend.

MultiversX/Tether (EGLDUSDT) opened at $8.57 on 2025-11-05 at 12:00 ET and closed at $8.01 by 12:00 ET on 2025-11-06. The pair traded between $8.61 and $8.01, with a total volume of 64,137.7 units and a turnover of $534,668. The price action reveals a sharp bearish breakdown over the 24-hour period.

The 20-period and 50-period moving averages on the 15-minute chart both trended downward, confirming the bearish momentum. The 50-period MA acted as a dynamic resistance, with the price failing to reclaim this level after 19:00 ET on 2025-11-05. This breakdown suggests further pressure is likely in the near term, with the 8.50 level now offering key resistance.

Momentum indicators showed significant bearish divergence. The RSI dropped into oversold territory, reaching a low of 28, signaling potential short-term exhaustion among sellers. The MACD showed a bearish crossover, with the histogram expanding as the price declined, reinforcing the strength of the downtrend. Bollinger Bands expanded during the session, indicating heightened volatility, with the price finding support at the lower band twice, most notably around $8.10 and $8.01.

Volume activity surged in the late session, especially between 15:45 and 17:00 ET, as the price fell from $8.23 to $8.01. This volume surge provided strong confirmation for the bearish move. A notable bearish engulfing pattern formed at $8.60, which acted as a key reversal signal before the extended downtrend. Fibonacci retracement levels at 61.8% (around $8.50) and 78.6% (around $8.35) were both decisively rejected.

Backtest Hypothesis

A potential backtesting strategy for EGLDUSDT could involve a short entry on the bearish engulfing pattern identified near $8.60, with a stop-loss placed above $8.65 and a target aligned with the 50-period SMA as a dynamic exit point. The strategy could be refined by including a trailing stop to lock in profits as the price moves lower. Given the recent volatility and volume confirmation during the downtrend, this approach may offer a favorable risk-reward ratio. Additional refinements, such as confirming the signal with the RSI entering oversold territory and the MACD turning bearish, could improve the signal’s reliability for a 15-minute intraday or daily timeframe.