Market Overview: Neo/Tether (NEOUSDT) – October 25, 2025

• Neo/Tether (NEOUSDT) traded within a tight range before a late rally pushed it to a 24-hour high near $5.15.
• A bullish reversal pattern emerged near support at $5.10, with volume confirming the move.
• RSI showed overbought conditions near 70, suggesting potential near-term pullback risk.
• Volatility expanded late in the session, with Bollinger Bands widening as momentum increased.
• Turnover spiked during the final 6 hours, signaling renewed short-term speculative interest.

Neo/Tether (NEOUSDT) opened at $5.109 on October 24, 12:00 ET, and closed at $5.133 at the same time the following day, reaching a high of $5.151 and a low of $5.091. Total traded volume across the 24-hour window was 233,450.38, and notional turnover amounted to approximately $1.19 million. The pair displayed a late-day rally, breaking above a key horizontal support-turned-resistance level.

Structure and formations on the 15-minute chart revealed a bullish reversal pattern as price rebounded from the $5.10 level, confirmed by rising volume. A series of higher lows and a breakout above the $5.13 psychological level suggested growing bullish conviction. A doji formed near $5.139, indicating indecision but failing to reverse the upward momentum. Resistance levels at $5.15 and $5.18 were tested but not decisively broken, while support remained firm at $5.10 and $5.09.

Moving averages showed a constructive alignment, with the 20-period (5.117) above the 50-period (5.109) on the 15-minute chart, reinforcing the near-term bullish bias. On the daily chart, the 50-period (5.112) and 100-period (5.104) lines were in a bullish crossover, while the 200-period (5.098) provided a longer-term baseline support. Price has spent most of the session above the 20-period line, which is a positive sign for continuation.

MACD showed a positive crossover earlier in the session, with the histogram expanding as the rally unfolded. RSI rose sharply to 70, entering overbought territory and indicating a possible near-term consolidation. Bollinger Bands expanded significantly during the final 6 hours, reflecting a rise in volatility. Price remained within the bands but approached the upper boundary, which often precedes a short-term correction or breakout.

Volume and turnover saw a noticeable spike during the final 4.5 hours of the session, coinciding with the rally above $5.13. This aligns with the price action and supports the bullish thesis. However, there was a divergence in the final candle—a strong volume-driven rally but with closing price unchanged from earlier highs, which could suggest exhaustion. Turnover, however, remained consistent with price levels, showing no signs of divergence.

Fibonacci retracement levels applied to the recent 15-minute swing (from $5.091 to $5.151) placed the 61.8% level at $5.13, which was tested and held. On the daily chart, the 50% Fibonacci level aligned with the $5.12 price point, where the pair found support early in the session before pushing higher.

Backtest Hypothesis: The “1-Day Bullish Engulfing” strategy is a price-action-based approach that targets short-term reversals based on a confirmed bullish candlestick pattern. On the NEOUSDT 15-minute chart, the strategy would enter long at the close of the engulfing candle and hold for one trading day, with standard stop-loss and take-profit levels applied. The backtest applied from 2022-01-03 to 2025-10-24 offers insights into the strategy's viability. Key findings will include hit ratio, average return per trade, and performance versus a buy-and-hold benchmark. Investors may consider this as a supplementary tool, especially when the pattern appears in alignment with strong support levels or breakout scenarios.