Market Overview: yearn.finance/Tether USDt (YFIUSDT) - 24-Hour Technical Summary

• YFIUSDT traded in a tight range before a late-night break higher, with a 24-hour close near 5,200.
• A key support at 5,175 held through volatile sessions, suggesting short-term bullish resilience.
• Volume dipped in the morning but surged post-midnight as the price tested key Fibonacci levels.
• RSI signaled oversold conditions in the early hours, hinting at potential bounce setups.
• Bollinger Bands contracted before expanding, indicating a potential breakout phase.

The yearn.finance/Tether USDt (YFIUSDT) pair opened at $5,240 at 12:00 ET on September 5, reached a high of $5,271, and a low of $5,169 before closing at $5,190 at 12:00 ET on September 6. The 24-hour total volume was 177.36925 YFI, and the notional turnover was $931,081.89.

Structure & Formations

Price formed multiple small bullish engulfing patterns and doji around the $5,180–$5,200 range, signaling indecision and potential reversal points. A key support level emerged at $5,175, which was tested but not broken. Resistance appears to be forming at $5,220–$5,230, where the price stalled multiple times during the session.

Moving Averages

On the 15-minute chart, the 20-period MA crossed above the 50-period MA mid-session, suggesting short-term bullish momentum. On the daily chart, the 50-period MA sits above the 100- and 200-period MAs, indicating a longer-term bullish bias, though the 50-period MA is now approaching the 100-period MA from above, signaling potential consolidation.

MACD & RSI

The MACD crossed above zero early in the session and remained in positive territory, showing bullish momentum. The RSI hit oversold territory in the early hours and has since rebounded, suggesting a potential continuation of the upward move. However, RSI is approaching overbought territory near $5,230, which could signal a pullback.

Bollinger Bands

Bollinger Bands showed a period of contraction between 1:00–4:00 ET, followed by a sharp expansion. Price closed near the upper band at $5,200, suggesting a potential continuation of the upward trend.

Volume & Turnover

Volume was muted in the early hours but surged after 7:00 PM ET as the price broke above $5,230. The largest volume spike occurred at $5,250–$5,260, where the price consolidated briefly before retreating. Notional turnover mirrored volume trends, confirming price movements during key swings.

Fibonacci Retracements

Applying Fibonacci to the key swing from $5,169 to $5,271, price found support at 38.2% ($5,186) and 61.8% ($5,199). A potential target for the next leg up is the 78.6% level at $5,217.

Backtest Hypothesis

A possible backtesting strategy involves entering long positions on a 15-minute close above the 20-period MA, with a stop-loss placed below the 50-period MA. This aligns with the morning breakout seen in the 15-minute chart, which occurred as volume spiked and MACD signaled bullish momentum. A take-profit target could be set at the 38.2% Fibonacci level on a 15-minute move. This strategy would be best tested using historical data during similar volatility patterns.