Market Overview: Nervos Network/Tether (CKBUSDT) – Sharp Recovery on Strong Late Volume

• Nervos Network/Tether (CKBUSDT) fell to a 24-hour low of $0.004196 before recovering to close at $0.004399.
• Price broke above a key 24-hour resistance at $0.004399 on rising volume.
• Volatility surged late in the session, with a 10.5% intraday range.
• RSI and MACD showed bullish momentum divergence as price reached recent highs.
• Turnover spiked 3x in the last 2 hours, signaling growing conviction.

Nervos Network/Tether (CKBUSDT) opened at $0.004295 on 12:00 ET – 1 and traded between $0.004196 and $0.004493 before closing at $0.004399 at 12:00 ET. Total traded volume reached 113,067,795.0 units, with notional turnover surging to $490,967.88. A late surge in buying pressure, particularly between 07:15 and 08:45 ET, pushed the pair above key resistance levels, raising bullish momentum.

The structure of the candlestick pattern suggests a strong reversal after a prolonged bearish phase. A bullish engulfing pattern formed at the session low, followed by a long-bodied white candle that closed near the high. Key support levels appear to be at $0.004286 and $0.004213, with resistance strengthening at $0.004399 and $0.004493. A 20-period and 50-period moving average on the 15-minute chart shows the price closing above both, indicating short-term bullish momentum.

text2img

MACD lines showed a positive crossover in the last 2 hours, with the histogram expanding as the price surged higher. The RSI hit overbought territory (above 60) for the first time in the session, signaling potential consolidation ahead. Volatility, as measured by Bollinger Bands, expanded significantly during the late session move, with price closing near the upper band, suggesting a potential exhaustion of the current bullish thrust.

Bollinger Bands expanded after a period of compression between 19:00 and 21:30 ET, indicating a breakout scenario. Price closed near the upper band, reinforcing the strength of the move. Volume and turnover were tightly correlated, with a sharp increase in both metrics coinciding with the breakout. A 38.2% Fibonacci retracement level was breached, with the 61.8% level at $0.004436 likely to be the next target.

text2visual

Backtest Hypothesis

A potential backtest strategy could involve entering a long position when the 20-period moving average crosses above the 50-period line on the 15-minute chart, confirmed by a bullish engulfing candle and increasing volume. A stop-loss could be placed below the 38.2% Fibonacci level, with a take-profit at the 61.8% level. This approach would aim to capture short-term momentum with clear risk management. Given the recent volatility and volume confirmation, this strategy appears to align well with the observed technical setup.

backtest_stock_component