Market Overview for MultiversX/Tether (EGLDUSDT): Volatility Peaks Amid Divergent Momentum

• Price opened at $13.15, surged to a high of $13.55, and closed at $12.91 after a sharp decline.
• Momentum shifted dramatically after 03:00 ET as RSI moved from overbought to neutral.
• Volatility expanded significantly, with Bollinger Bands widening from ~$13.10 to ~$13.55.
• Turnover spiked during the morning hours, peaking at ~$4.5M before consolidating downward.
• A bearish engulfing pattern formed between $13.21 and $13.15, suggesting short-term bearish pressure.

Price Action and Open/Close

MultiversX/Tether (EGLDUSDT) opened at $13.15 on 2025-10-08 at 12:00 ET, reaching a high of $13.55 before closing at $12.91 at 12:00 ET on 2025-10-09. The 24-hour period saw a total volume of 57,632.53 EGLD and a notional turnover of approximately $757,692. The price experienced a sharp, bearish reversal in the overnight session following a midday rally.

Structure & Formations

Key resistance levels were identified near $13.55 and $13.30, where the price stalled multiple times during the morning push. A strong support emerged at $13.18–$13.15, which was tested and held before the price broke lower in the early hours of October 9. A bearish engulfing pattern developed at the top of the consolidation range between $13.21 and $13.15, signaling a potential shift in short-term sentiment.

Volatility and Bollinger Bands

Volatility expanded sharply during the midday rally, with Bollinger Bands stretching from a lower band near $13.10 to an upper band near $13.55. Price spent most of the morning inside the upper half of the bands, indicating bullish momentum, before dropping below the 20-period SMA and the lower band in the early hours of October 9. This suggests a potential period of consolidation or further downside pressure.

Moving Averages and Momentum

On the 15-minute chart, the 20-period and 50-period SMAs crossed above $13.30 during the morning, confirming a short-term bullish bias before the bearish reversal. The 50-period SMA remains a critical level at $13.30 for the next 24 hours. On the daily chart, the 50-period SMA is at $13.45, and the 200-period SMA is at $13.35, with price currently below both. RSI crossed from overbought (above 70) into neutral territory (mid-50s), aligning with the bearish reversal.

MACD and RSI

The MACD line turned negative after the price drop, while the histogram contracted, confirming a loss of bullish momentum. The RSI dropped from overbought territory to the mid-50s, indicating a possible exhaustion of the previous rally and a potential continuation of the bearish move. The divergence between the RSI and price movement in the overnight session also suggests increased bearish pressure.

Volume and Turnover

Volume peaked during the morning rally and declined significantly after 03:00 ET as the bearish trend accelerated. Notional turnover reached a high of ~$4.5M during the midday push but dropped to ~$1.5M during the bearish phase. The divergence between price and volume indicates that the bearish move lacks strong follow-through, raising the possibility of a short-term bounce if the $13.15 support holds.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent swing high of $13.55 and the subsequent low of $12.91, the 38.2% retracement level is at $13.37 and the 61.8% level is at $13.17. Price stalled near the 61.8% level before continuing lower, suggesting this may be a key level to watch for potential bounces or further breakdowns.

Backtest Hypothesis

A potential backtest strategy could be to enter a short position when price breaks below the 20-period SMA and the RSI crosses below 60, with a stop-loss placed just above the most recent swing high. Targets could be set at the 61.8% Fibonacci retracement level and the 200-period SMA as short-term and medium-term goals, respectively. This approach would aim to capture bearish momentum confirmed by both trend and momentum indicators.