Market Overview for Newton Protocol/Tether (NEWTUSDT) on 2025-10-07

• Price dropped to 0.1968 from 0.2130 amid increasing volume and volatile swings.
• Key support appears at 0.2010–0.1974, with resistance clustering near 0.2098–0.211.
• MACD showed bearish divergence while RSI hit oversold levels near 0.1972–0.1974.
• Bollinger Bands widened early before contraction as price fell below the 20-period MA.
• Final 15-min candle confirmed bearish momentum, closing near 0.1986 with strong volume.

Newton Protocol/Tether (NEWTUSDT) opened at 0.2078 on October 6 at 12:00 ET, peaked at 0.2130, and bottomed at 0.1968 before closing at 0.1986 as of 12:00 ET on October 7. The 24-hour total volume was 5,640,399.4, while total turnover reached $1,157,885.69 (sum of volume × price). Price action was marked by aggressive bearish moves, especially after 14:00 ET.

Structure & Formations

Price moved in a clear bearish trend throughout the day, with several key levels acting as both support and resistance. A significant swing high of 0.2130 was rejected, triggering a steep decline. A bearish engulfing pattern formed at this level. Later, a key support at 0.2010–0.1974 held three times, with the last rejection occurring on the final candle, confirming a short-term oversold condition. A long lower shadow on the 15:00 ET candle suggests a possible near-term floor forming at or just below 0.1972. No strong bullish reversal patterns emerged, and the market appears to be consolidating or testing support.

Moving Averages and Bollinger Bands

The 15-minute chart showed price below the 20- and 50-period moving averages for most of the session, suggesting bearish bias. Bollinger Bands expanded significantly early in the session, reflecting heightened volatility before narrowing again as price settled into a tight range. On the daily chart, 50/100/200-period MAs suggest a mixed picture, with the 50-day line showing a slight downward drift. Price closed below the 200-day MA, reinforcing a medium-term bearish trend.

MACD and RSI

The MACD line remained below the signal line for the entire session, confirming bearish momentum. A bearish divergence was noted as price hit lower lows while MACD failed to do the same, hinting at potential short-term rebounds. RSI bottomed at oversold levels near 0.1974, with a reading under 30 in the final hour. This suggests that further downside may be limited for now, but overbought conditions have yet to form, so any rally is likely to be short-lived.

Volume and Turnover

Volume increased significantly during key price drops, particularly after the 14:00 ET 15-minute candle, where 176,942.9 units were traded at the lowest point of the day. Notional turnover also spiked during the same period, confirming the bearish sentiment. Later, as price approached support levels, volume decreased, indicating reduced conviction in further downside. A divergence between price and turnover was noted during the final 15-minute candle, suggesting a potential reversal or consolidation phase.

Fibonacci Retracements

Applying Fibonacci to the key swing high of 0.2130 and the subsequent low of 0.1968, the 38.2% level (~0.2064) held briefly before breaking down. The 61.8% level (~0.2035) also provided temporary support, but failed to prevent the continued decline. The final price action closed near the 78.6% retracement (~0.1985), aligning with the 15-minute close. This suggests that 0.1974 could act as a psychological floor, with 0.2035 as a key level to watch in the next 24 hours.

Backtest Hypothesis

Given the bearish divergence in the MACD and RSI hitting oversold territory, a potential backtest strategy could involve a long-position reversal trade. Traders might consider entering a long at or near the 0.1974 level with a stop-loss just below 0.1968 and a target near 0.2035. This aligns with the 61.8% Fibonacci level and recent support clusters. While the 24-hour data shows a high probability of short-term consolidation or a bounce, long-term bearish indicators (200-day MA) suggest traders should manage risk carefully and avoid aggressive bullish bets in the absence of clear breakout signals.