Market Overview for Nexo/Tether (NEXOUSDT) – 2025-10-26

• Nexo/Tether (NEXOUSDT) saw a 24-hour range of 1.132–1.149, closing near mid-range at 1.141.
• A late-night surge above 1.145 marked a bearish reversal pattern, followed by consolidation.
• Volume spiked in the early morning hours, with a total turnover of ~$352,000 and volume of ~186,000 NEXO.
• RSI entered overbought territory during the rally, suggesting potential momentum exhaustion.
• Price hovered above the 20-period MA for much of the day, but the 50-period MA posed resistance.

The Nexo/Tether pair (NEXOUSDT) opened at 1.134 on October 25, 2025, and reached a high of 1.149 by early morning before retreating to close at 1.141 at 12:00 ET. Over the 24-hour period, total volume amounted to ~186,000 NEXO, with a notional turnover of approximately $352,000. The price action featured a strong bullish breakout early in the evening, followed by a bearish reversal and consolidation.

On the 15-minute chart, NEXOUSDT tested key levels with multiple attempts to break above the 50-period moving average (around 1.139), which acted as a temporary resistance. A bearish engulfing pattern formed around 19:15 ET when price surged to 1.139 and then closed lower, suggesting a potential shift in momentum. The formation of this pattern near a prior high was a bearish signal, reinforced by an RSI reading in overbought territory and a narrowing Bollinger Band contraction preceding the move.

The 20-period MA held well above the price for most of the day, while the 50-period MA appeared to act as a dynamic resistance. Volume surged between 22:00 and 23:30 ET, with strong bearish close bars confirming a shift in sentiment. A 61.8% Fibonacci retracement level (1.143) coincided with the 50-period MA and became a key resistance level. Price bounced from this area multiple times, indicating its psychological importance.

Bollinger Bands showed a mild expansion during the rally phase, while RSI remained elevated and suggested a potential pullback. MACD crossed into bearish territory in the early morning hours, confirming the reversal. Notably, divergence appeared between the price and volume during the late-night rally, with volume tapering off as price made new highs. This could signal a weakening in the bullish momentum.

The backtest hypothesis is based on identifying Bearish-Engulfing candlestick patterns as a potential short signal for NEXOUSDT. The challenge lies in the data engine not recognizing the ticker symbol, likely due to naming inconsistencies or exchange-specific listings. To ensure accuracy, the correct ticker symbol must be confirmed (e.g., “NEXO/USDT” on Binance or OKX) to align with the data source. Once confirmed, the strategy would involve entering a short position at the next day’s open (or at the close of the signal bar) and exiting at the next day’s close. This assumes a one-day holding period and uses daily close prices by default, unless otherwise specified.

The success of this backtest relies on the accuracy of pattern detection and alignment with actual market data. A potential refinement could involve using intraday signals (e.g., 15-minute candles) to capture earlier entries. Additionally, volume and turnover data could serve as filters to confirm the strength of the bearish signal. Given the recent price action, including the bearish engulfing pattern and overbought RSI, the backtest could provide valuable insights into the pair’s short-term behavior.