Newton Protocol/Tether Market Overview

• Price fell from 0.2072 to 0.1915, breaking key support levels with bearish momentum
• RSI and MACD signaled oversold conditions, suggesting potential for short-term bounce
• Bollinger Bands widened as volatility surged, with price near the lower band
• Volume increased in the morning, but price failed to recover, signaling weak buying pressure
• Fibonacci retracements suggest a possible rebound near 0.1935 or further consolidation

24-Hour Price Action and Volume

At 12:00 ET on October 9, 2025, Newton Protocol/Tether (NEWTUSDT) opened at 0.2023 and traded as high as 0.2072 before falling to a low of 0.1915, closing at 0.1927. Over the past 24 hours, the total trading volume reached 1,634,529.9 units, with a notional turnover of approximately $314,922.73 (based on weighted average price). The price action shows a strong bearish bias with key resistance levels tested and broken.

Structure & Key Levels

The 24-hour candlestick chart reveals a strong bearish structure. A key resistance level at 0.205–0.206 was tested multiple times and eventually breached. Notable bearish patterns include a hanging man near 0.2056 and a bearish engulfing pattern at 0.2051–0.2048, which signaled a continuation of the downward trend. The support zone between 0.1935 and 0.1945 has been tested twice, with the price failing to break above it in both instances, suggesting it could be a key psychological level.

Support and Resistance

Key support levels are currently identified at 0.1935 (tested twice), 0.195 (a former minor support), and 0.1975 (an area of consolidation earlier in the session). On the resistance side, the most recent failed attempts were at 0.1965 and 0.198, with the next major level likely at 0.2015–0.2025, which could act as a pivot if buyers show strength.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs are both bearish, with the 20-period line crossing below the 50-period line in a death cross formation. This reinforces the bearish momentum. On the daily chart, the 50-period SMA at 0.1985 is currently acting as a dynamic resistance, while the 200-period SMA is at 0.2045, indicating the broader trend remains bearish. Price is significantly below both, with little sign of reversal.

MACD and RSI

The 12-26 MACD has turned bearish, with the histogram showing a strong negative divergence from the price action. The signal line has crossed below the MACD line, confirming a bearish bias. Meanwhile, the RSI has entered the oversold territory at ~28, suggesting a short-term rebound may be on the cards, but this does not necessarily indicate a reversal in the broader trend.

Overbought/Oversold Conditions

The RSI is currently in oversold territory, which often signals a potential bounce. However, in the context of a strong bearish trend, oversold readings can be misleading. Traders should watch for divergence between the RSI and price action before concluding a reversal is imminent.

Bollinger Bands

Volatility has expanded significantly over the past 24 hours, with the Bollinger Bands widening as the price moved sharply lower. The price is currently near the lower band at 0.1915–0.1925, indicating a high volatility environment and a potential bounce from this level. If the price breaks below the lower band, it could signal a continuation of the downtrend, but this must be confirmed with additional volume and price action.

Volume and Turnover

Volume spiked during the early hours of the morning, particularly around 01:00–04:00 ET, but the price failed to sustain a recovery, indicating weak buying pressure. The total volume of 1,634,529.9 units is above the 30-day average, but the notional turnover is relatively modest due to the low price of the asset. Divergence between rising volume and falling price suggests bearish conviction, though a potential short-covering rally may occur if the 0.1935 support holds.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent 15-minute swing from 0.2072 to 0.1915, key levels at 0.2025 (23.6%), 0.2008 (38.2%), 0.1991 (50%), and 0.1974 (61.8%) have been tested. The price has shown some consolidation near the 0.1974 level, suggesting this could be a potential area for a rebound or continuation of the downward trend depending on volume and order flow.

Backtest Hypothesis

The backtesting strategy described focuses on short-term mean reversion and breakout patterns in high volatility environments. Given the current Bollinger Band expansion and RSI entering oversold territory, a potential entry point could be near the 0.1935 level if the price bounces and holds above this support. A long position could be considered with a stop below 0.1915, while a short could be triggered if the price breaks below 0.1935 with confirmation from volume. This strategy aligns well with the recent price behavior and Fibonacci retracement levels.