Market Overview for Zilliqa/Tether (ZILUSDT) – 2025-10-07

• ZILUSDT declined from a high of $0.01127 to $0.01066, closing below key support.
• Volume spiked during the breakdown, confirming bearish momentum.
• RSI and MACD showed oversold conditions near the close, hinting at potential bounce.
• Bollinger Bands showed a contraction before the breakdown, suggesting increased volatility.
• A strong bearish engulfing pattern formed at 03:30–03:45 ET, signaling a key directional shift.

Zilliqa/Tether (ZILUSDT) opened at $0.01119 on 2025-10-06 at 12:00 ET and closed at $0.01066 the following day. The pair hit a high of $0.01127 and a low of $0.01061. Total traded volume reached 40.9 million ZIL, with a notional turnover of $4.56 million. Price action saw a bearish breakdown from key resistance at $0.01124 to support at $0.01061, confirmed by strong volume and candle patterns.

Over the past 24 hours, ZILUSDT has shown a clear bearish bias, with price falling through critical levels. A bearish engulfing pattern formed around 03:30–03:45 ET, confirming a shift in sentiment. The 50-period and 200-period moving averages are both below the price, reinforcing the downtrend. Bollinger Bands showed a period of contraction before the price broke down, suggesting increased volatility and a possible continuation of the trend. Key support levels to watch are $0.01061 and $0.01045, with resistance at $0.01100 and $0.01124.

MACD and RSI both signaled bearish momentum, with RSI dipping into oversold territory near the close at 29. This could indicate a short-term bounce or consolidation. However, the breakdown in price and volume has yet to be challenged effectively, and a retest of the $0.01100–$0.01124 range is unlikely in the near term. Volume and turnover remained strong during the decline but weakened after the breakdown, suggesting exhaustion in the bearish move.

Fibonacci retracement levels from the recent swing high of $0.01127 to the low at $0.01061 indicate key levels at 38.2% ($0.01102) and 61.8% ($0.01084). The price is currently resting below both, with potential for a 23.6% retracement at $0.01115 as a short-term resistance level. Traders should closely monitor these levels for potential bounces or further breakdowns.

The 20 and 50-period moving averages on the 15-minute chart are sloping downward, reinforcing the bearish bias. The 20-period MA is at $0.01080, while the 50-period MA sits at $0.01087. Both are above the current price, indicating further downward pressure.

Backtest Hypothesis: A possible strategy could involve shorting ZILUSDT at the breakdown of the $0.01124 resistance level, with a stop-loss placed just above the prior high of $0.01127. A target of $0.01061 aligns with the recent swing low and key Fibonacci level. Given the strong volume and bearish pattern, this trade could have been confirmed at the time of the breakdown.