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

• NEWT/USDT surged 3.6% on strong accumulation at key support levels.
• Rising volume and positive divergence in RSI suggest potential bullish reversal.
• Price tested $0.1390 resistance twice, failing both times but forming a bullish flag pattern.
• MACD crossed above zero, signaling renewed bullish momentum.
• Volatility increased with Bollinger Bands widening, indicating a breakout attempt.

Opening Narrative

Newton Protocol/Tether (NEWTUSDT) opened at $0.1351 on 2025-11-01 16:00 ET, surged to a high of $0.1395, and closed at $0.1394 at 12:00 ET on 2025-11-02. Total volume was 3,773,845.9 with a turnover of $517,813.40, signaling active participation in the upward leg. The price action revealed a bullish continuation pattern, supported by increasing volume and momentum indicators.

Structure & Formations

Price tested the $0.1390 psychological level twice within the 24-hour period, forming a bullish flag pattern amid rising volume. A key support level was established at $0.1350, where buyers stepped in to absorb selling pressure. A notable bearish divergence in the early hours was followed by a bullish engulfing pattern as buyers retook control by the end of the session.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs crossed to the upside, confirming a short-term bullish bias. The 50-period SMA is currently at $0.1379, aligning with the mid-range of the Bollinger Bands. The 200-period SMA on a daily chart is likely below the 24-hour high, indicating potential for a breakout above the recent consolidation.

MACD & RSI

The 12-period MACD crossed above the zero line, with a bullish histogram expansion suggesting strengthening momentum. RSI reached 58, indicating that the pair is neither overbought nor oversold but showing signs of a bullish reversal after a prolonged downtrend. A divergence between price lows and RSI lows in the early hours was resolved as the RSI rebounded sharply with rising volume.

Bollinger Bands

Volatility expanded significantly during the 24-hour period, with Bollinger Bands widening to accommodate the price’s range. The closing price sat near the upper band, suggesting overbought conditions and the potential for a retracement. The 20-period standard deviation is higher than usual, signaling increased market participation and speculative activity.

Volume & Turnover

Volume surged notably in the final 6 hours of the 24-hour period, with the highest volume candle (at $0.1407–0.1415) indicating strong buying pressure. Notional turnover also rose in line with the price rally, suggesting accumulation rather than distribution. No significant divergence was observed between price and volume, supporting the credibility of the bullish move.

Fibonacci Retracements

Applying Fibonacci levels to the recent $0.1350–$0.1395 swing, the 61.8% level is at $0.1383 and acted as a short-term support during the consolidation phase. The 78.6% level at $0.1390 served as a resistance level twice, with the price forming a potential breakout pattern after the second test.

Backtest Hypothesis

To validate the technical signals observed in this 24-hour period, a backtest could be structured using the identified bullish patterns and indicators. A strategy could be built around detecting a bullish engulfing pattern (price close above open with strong volume) and using it as a signal to enter long at the next open. Exit would occur at the close of the next candle. A transaction cost of 0.05% could be factored in for realism. This approach would mirror the behavior observed in the recent NEWT/USDT move, offering a framework to assess the reliability of such signals over time.