Market Overview for Newton Protocol/Tether (NEWTUSDT) on 2025-10-03

• Price action showed a bullish breakout above 0.2100 before retracing to close near 0.2072.
• Strong volume expansion occurred during the early hours, confirming a period of heightened interest.
• RSI and MACD indicated overbought levels earlier in the session but now suggest bearish momentum.
• Price remains within a 24-hour Bollinger Band contraction, with a retest of key support at 0.2065 likely.
• A bullish engulfing pattern formed during the 18:45–19:00 ET window, followed by a bearish rejection at 0.2106.

Opening and Closing Summary

Newton Protocol/Tether (NEWTUSDT) opened at 0.2046 on 2025-10-02 at 12:00 ET, reaching a high of 0.2106 before retreating to a low of 0.2056 during the 24-hour period and closing at 0.2072 on 2025-10-03 at 12:00 ET. The total traded volume was 1,377,624.0 units, with notional turnover of $282,699.45.

Structure & Formations

Price action displayed a strong bullish breakout above 0.2100 during the early evening, capped by a bullish engulfing candle, followed by a bearish rejection at 0.2106 and a subsequent consolidation phase below 0.2080. A bearish doji emerged near 0.2081, signaling indecision. Key support levels identified include 0.2065 (initial support) and 0.2056 (secondary support), while resistance sits at 0.2080 and 0.2100.

Moving Averages

Short-term momentum is bearish, with the 20-period and 50-period EMA on the 15-minute chart forming a death cross during the early morning hours. On the daily chart, the 50-period MA is above the 100- and 200-period MAs, indicating a potential long-term support trend but with short-term bearish pressure.

MACD & RSI

The MACD turned bearish after a brief bullish crossover, with the line dipping below the signal line. The RSI peaked at overbought levels (76) before declining to neutral territory (~55), suggesting a potential bearish reversal. A divergence between RSI and price during the early morning hours suggests a weakening of bullish momentum.

Bollinger Bands remained narrow for most of the session, indicating low volatility, but expanded during the 01:00–05:00 ET window, reflecting increased price uncertainty. Price remained within the bands for much of the session but touched the lower band near 0.2065, indicating potential oversold conditions.

Volume & Turnover

Volume spiked during the 01:00–04:15 ET window, with the highest notional turnover occurring at 04:15 ET (volume: 206,777.4 units, turnover: $43,423.25). A bearish volume divergence was observed during the afternoon and evening, where price continued to rise but volume declined, suggesting waning buying pressure.

Fibonacci Retracements

Applying Fibonacci to the key 15-minute swing from 0.2046 to 0.2106, price found resistance at the 61.8% level (0.2089) and then retested the 50% level (0.2076) before closing near 0.2072. Daily retracements from the 24-hour range (0.2056–0.2106) suggest potential support at 0.2083 (38.2%) and 0.2076 (50%).

Backtest Hypothesis

Based on the observed price patterns and technical indicators, a possible backtesting strategy could involve entering long positions on a bullish engulfing candle followed by a confirmed close above the 0.2080 level, with a stop loss placed below 0.2065 and a target near 0.2100. Conversely, short positions could be triggered on bearish divergences in RSI and volume during upward moves. Given the current environment, a time-weighted average price (TWAP) strategy during high-volume windows (01:00–04:15 ET) may also yield favorable results.