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• NEOUSDT opened at $5.232, reached $5.283, and closed at $5.175 on October 29, trading in a bearish trend.
• A sharp 15-minute drop to $5.052 from $5.283 marked a 4.6% intraday low, with volume surging to 41,686.71.
• RSI signaled oversold conditions, while MACD turned bearish with a negative crossover.
• Price tested key Fibonacci levels at 61.8% and 38.2% during the 24-hour period.
• Elevated volume (100k–150k) and a $5.11–$5.14 consolidation phase suggest pending volatility.
Neo/Tether (NEOUSDT) opened at $5.232 on October 29, reached a high of $5.283, and closed at $5.175 by 12:00 ET, marking a bearish 24-hour session. The pair traded a total volume of 644,882.04 units and a notional turnover of approximately $3,224,374.80, with significant intraday volatility highlighted by a 4.6% drop to $5.052.
On the 15-minute chart, NEOUSDT showed a complex price structure with clear support and resistance levels emerging in the $5.10–$5.14 and $5.25–$5.30 bands. A bearish engulfing pattern formed around $5.232, followed by a rapid breakdown to $5.052, signaling strong selling pressure. The price also tested Fibonacci retracement levels at 38.2% (~$5.16) and 61.8% (~$5.11) during the recovery phase, suggesting traders are paying close attention to these key levels.
The 20- and 50-period moving averages on the 15-minute chart crossed below the price in the late evening, confirming a bearish bias. On a daily basis, the 50- and 100-period moving averages showed a widening bearish divergence, with the 200-day average acting as a long-term anchor for bearish traders.
Relative Strength Index (RSI) reached oversold levels (~30) by 21:00 ET, suggesting potential for a short-term bounce, though it closed at ~38 by the end of the 24-hour window, still in the lower half of the scale. The Moving Average Convergence Divergence (MACD) turned negative early in the session, with a bearish crossover confirming a weakening trend. Bollinger Bands expanded significantly as the price dropped to $5.052, reflecting heightened volatility. Price remained below the lower band during this period, a strong bearish signal.
A consolidation phase emerged between $5.11 and $5.14 in the final hours of the session, with increasing volume suggesting a potential reversal or a test of key support levels. If $5.10 is broken with strong volume, the next target could be $5.05 or even $5.00, with a retest of the $5.10–$5.14 range likely after a pullback. Traders should closely monitor volume spikes and divergence between price and RSI for early signs of exhaustion or strength.
Backtest Hypothesis
To evaluate potential trading signals, a strategy based on the Bearish Engulfing pattern could be applied to NEOUSDT. This pattern was clearly visible during the early evening hours as the price reversed sharply lower. A backtest would involve identifying all instances of the Bearish Engulfing pattern since 2022 and measuring the performance of a sell signal taken at the close of the pattern with a 3-day exit. This approach would allow for testing the pattern’s efficacy in predicting short-term bearish moves, particularly in a market like NEOUSDT, which showed strong bearish momentum during the 24-hour period.
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