Market Overview: Yearn.Finance/Tether (YFIUSDT) – Volatile Consolidation with Strong Overnight Flare-Up

Summary
• Price surged above 3,550 before consolidating between 3,560-3,600 in late overnight trading.
• RSI crossed into overbought territory, suggesting potential near-term pullback.
• Volume spiked during the 22:15–22:45 ET window, coinciding with a sharp 3,600–3,570 correction.
• Bollinger Bands widened overnight, reflecting increased volatility amid strong buying interest.
• Key 5-minute bullish engulfing pattern formed around 23:45 ET near 3,605.

At 12:00 ET on January 14, 2026, yearn.finance/Tether (YFIUSDT) opened at 3,501, reaching a 24-hour high of 3,653 before closing at 3,571. Total volume was 223.9, with notional turnover of 816,000.

The 5-minute chart shows a sharp rally overnight, with price forming a key bullish engulfing pattern just before 3,605. This structure suggests buyers regained control after the initial 3,500–3,650 range expanded dramatically. MACD diverged slightly during the 22:15–22:45 ET sell-off, but RSI remains near overbought levels, signaling possible near-term profit-taking.

Bollinger Bands widened overnight as volatility increased, with price bouncing off the lower band multiple times in the early morning. This suggests traders may be using the 3,560–3,600 range as a short-term battleground.

Volume spiked during the 22:15–22:45 ET window, coinciding with a sharp correction from 3,633 to 3,573. This divergence between price and volume suggests caution is warranted for the next 24 hours. While a continuation above 3,610 could confirm the bullish bias, a drop below 3,560 may trigger further consolidation or a pullback toward 3,530. Investors should monitor for a potential 50-period moving average crossover as a near-term directional signal.