Market Overview: Nervos Network/Tether (CKBUSDT) on 2025-10-13

• Nervos Network/Tether (CKBUSDT) rose 2.3% in 24 hours, closing above key resistance after a strong midday breakout.
• Price action showed a bullish engulfing pattern at 0.003485 and a consolidation phase above 0.003512 in late hours.
• Volume surged near 0.00353–0.00357, confirming the breakout but declining into the close, hinting at cautious buying.
• Volatility expanded from 0.00345 to 0.00365, with Bollinger Bands showing a moderate widening near the session’s high.
• RSI remained in overbought territory, suggesting short-term profit-taking could materialize in the next 24 hours.

The Nervos Network/Tether pair (CKBUSDT) opened at 0.00338 on October 12, 2025, at 12:00 ET, and closed at 0.003505 on October 13, 2025, at the same time. The 24-hour range was 0.003371 to 0.003657, with total trading volume hitting 234.8 million and turnover reaching $656,000. The session saw a decisive midday breakout above 0.003512, supported by a 15-minute bullish engulfing pattern and strong volume confirmation.

Structure and formations on the 15-minute chart indicated strong support at 0.003485–0.003490, which held during retracement attempts. A breakout above the 0.003512–0.003535 resistance cluster was confirmed by both price action and volume, with a bullish flag pattern forming after a consolidation phase. The 20-period moving average (20SMA) crossed the 50SMA in late afternoon trading, signaling a shift in momentum toward the upside.

Bollinger Bands showed a moderate expansion during the session, with prices testing the upper band near 0.00361–0.00363, particularly between 1345 and 1415 ET. This suggests rising volatility and potential continuation of the breakout move. The 61.8% Fibonacci retracement level from the 0.003535–0.003485 swing was at 0.003507, which aligned with the 20SMA and served as a key dynamic support level.

The momentum profile, as measured by the RSI, remained in overbought territory for much of the session, particularly after 1930 ET when the RSI crossed above 70 and lingered there. This suggests a potential near-term reversal or profit-taking, but not a full exhaustion of buying momentum. Volume also surged during these overbought phases, indicating strong conviction in the move upward. Divergences were minimal; however, a slight bearish divergence appeared in the final 90 minutes as volume dropped despite RSI remaining near overbought levels.

Backtest Hypothesis

A potential backtesting strategy could be designed around a 3-day hold approach, using RSI as a trigger to enter and exit the CKBUSDT trade. For example, an entry could be initiated when the RSI crosses above 70 (overbought), followed by a hold period of three days and a subsequent exit on the RSI crossing below 30 (oversold). This would leverage the overbought condition and momentum to capture short-term directional bias. Given the high volume during the breakout and the RSI’s overbought behavior, this pair could be a strong candidate for backtesting such a momentum-based strategy, particularly if the RSI data is retrieved for a broader time frame. The success of this strategy would depend on the consistency of RSI as a leading indicator in this pair’s behavior and the ability to avoid false breakouts.