Market Overview: Newton Protocol/Tether (NEWTUSDT) 24-Hour Technical Summary

• Price action showed a sharp 15-minute rebound above 0.2010 before consolidating near 0.2005.
• RSI hit overbought territory briefly, but volume failed to confirm the bullish breakout.
• Bollinger Band squeeze and expansion signaled heightened volatility into early New York trading.
• Volume spiked during the 02:15–02:45 ET window, coinciding with a 0.2040 peak and 0.2030 close.
• A key 15-minute doji at 0.2013-0.2017 (05:45 ET) suggests indecision amid a broader bullish rally.

Newton Protocol/Tether (NEWTUSDT) opened at 0.1974 on October 7 at 12:00 ET and reached a 24-hour high of 0.2049. The pair closed at 0.2005 as of October 8, 12:00 ET, with a low of 0.1958 and a total volume of 5,121,094.8 at 15-minute intervals. The notional turnover was $1,021,492.10, reflecting elevated interest and volatility during key bullish intervals.

On the 15-minute chart, price formed a bullish engulfing pattern from 02:30–02:45 ET, with a high of 0.2054 and a close of 0.2039. This was followed by a consolidation phase with a bearish reversal candle at 03:00 ET (0.2039 to 0.2030). A doji candle formed at 05:45 ET (0.2013–0.2017), signaling indecision. Price found support at 0.1982–0.1985 during the 05:30–05:45 ET interval and later tested the 0.2005–0.2010 resistance zone. Key support levels include 0.1995 (tested multiple times) and 0.1985 (retested during the 02:30–05:00 ET window).

The 20-period and 50-period moving averages on the 15-minute chart showed a convergence above 0.2000, indicating a potential bullish bias. However, the 50-period line remained below the 20-period line, suggesting a temporary correction rather than a full reversal. RSI reached 70+ levels twice during the session, first at 02:15 ET and again at 02:30 ET, signaling overbought conditions. MACD crossed above the signal line at 02:00 ET, confirming bullish momentum but failed to hold above it during the consolidation phase. Bollinger Bands showed a contraction during the 04:00–05:00 ET window and then expanded sharply with the 02:15–02:30 ET rally, suggesting heightened volatility and potential reversal points.

Volume was most active during the 02:15–02:45 ET window, with the highest single-candle turnover of $123,743.30 at 02:15 ET. This coincided with a peak of 0.2026. However, volume declined significantly during the 03:00–04:00 ET period, suggesting a lack of follow-through on the bullish breakout. Notional turnover diverged slightly with price at 03:30–04:15 ET, with price continuing to consolidate while volume remained subdued. Fibonacci retracement levels from the 02:15 ET peak at 0.2026 showed key levels at 0.2010 (38.2%) and 0.2000 (50%), both of which were tested during the 05:00–06:00 ET period.

The 24-hour period featured a strong bullish impulse followed by a consolidation phase with signs of potential exhaustion at 0.2005–0.2010. If the 0.2013 doji holds as a key level, the price could test the 0.2030 resistance zone again. A breakdown below 0.1995 could trigger a retest of 0.1982–0.1975, with 0.1970 as a critical support area. Investors should monitor volume and RSI for confirmation signals.

Backtest Hypothesis
A potential backtest strategy could focus on short-term entries after a bullish engulfing pattern is confirmed by above-average volume and a closing price above the 50-period moving average. Given the 15-minute timeframe, a stop-loss could be placed just below the engulfing candle’s low, with a target near the 61.8% Fibonacci level of the recent move. If RSI exceeds 70 and volume contracts, it may suggest a reversal, prompting an early exit. This approach could be tested on similar patterns over the past 30 days to assess profitability and risk-adjusted returns.