Market Overview for Newton Protocol/Tether (NEWTUSDT) – 2025-10-12

• Price fell to 0.1365 before rebounding with a 2.1% recovery over 24 hours.
• Volatility expanded significantly during the overnight selloff, followed by consolidation.
• On-balance volume increased during the recovery phase, confirming short-covering.
• MACD showed bearish divergence early, but RSI entered oversold territory, supporting a bounce.
• Bollinger Bands saw a contraction near 0.1369, followed by a rebound within the upper band.

Newton Protocol/Tether (NEWTUSDT) opened at 0.1415 on 2025-10-11 at 12:00 ET, hitting a low of 0.1365 before recovering to close at 0.141 at 12:00 ET on October 12. The 24-hour period saw a total trading volume of 6,976,117.0 and a notional turnover of $967,030.1. The price action reflected a strong bearish sentiment overnight, followed by a measured rebound in the morning hours.

Structure & Formations

The price of NEWTUSDT faced a critical support at 0.1365, which held during the overnight selloff. A bullish engulfing pattern emerged as the price rebounded from this level, closing above the prior bearish candle’s open. Additionally, a doji formed near 0.1382, signaling indecision and a possible reversal. These formations suggest that the market is testing the 0.1365 support level, which may serve as a pivot for the next few days.

Moving Averages

On the 15-minute chart, the price closed above both the 20-period and 50-period moving averages at 0.1403 and 0.1407 respectively, suggesting short-term bullish momentum. For the daily chart, the 50-day and 200-day EMAs are at 0.1405 and 0.1393, respectively. The price appears to be consolidating above these moving averages, indicating a potential continuation of the uptrend if the support at 0.1365 holds.

MACD & RSI

The MACD line turned negative during the early part of the 24-hour period but remained below the signal line, indicating bearish momentum. However, the RSI dropped to 29 during the selloff, entering the oversold zone and supporting a possible rebound. The divergence between MACD and RSI suggests mixed signals, with technical indicators hinting at a potential correction after the recent oversold bounce.

Bollinger Bands

Bollinger Bands showed a tight contraction around 0.1369, which preceded the price rebound. The 20-period standard deviation was at its narrowest in the past 24 hours, indicating a period of low volatility. The price has since moved back into the upper band, suggesting a potential breakout. If the 0.1365 support holds, the price could retest the upper band for confirmation of a short-term bullish trend.

Volume & Turnover

Volume spiked significantly during the selloff period, with a 24-hour high of 360,522 at 21:15 ET. This was followed by a measured increase in volume during the rebound, suggesting accumulation by buyers at the support level. Notional turnover aligned with the volume pattern, indicating that the price action was not driven by wash trades or liquidity traps. The price and turnover correlation supports a genuine bounce rather than a false breakout.

Fibonacci Retracements

Applying Fibonacci retracement levels to the recent 0.1365–0.1479 swing, the 38.2% and 61.8% retracement levels are at 0.1424 and 0.1457, respectively. The price closed at 0.141, near the 38.2% level, suggesting a potential target for the next upward move. For daily swings, the 200-day low at 0.1305 provides a longer-term support reference, though it is far from the current price.

Backtest Hypothesis

A potential backtesting strategy could involve entering long at 0.1365 on a close above the 15-minute 20-period moving average, with a stop-loss placed below the doji at 0.1362 and a target aligned with the 38.2% Fibonacci level at 0.1424. This approach would leverage the bearish divergence, oversold RSI, and bullish engulfing pattern to time a short-term bounce. The strategy relies on the assumption that the 0.1365 support will hold and that the MACD crossover could confirm a reversal.