Market Overview for Nexo/Tether (NEXOUSDT): October 11, 2025

• Price dropped sharply from $1.26 to $1.135 on 15-minute chart, forming bearish engulfing patterns.
• RSI hit oversold territory below 30 late in the day, suggesting potential short-term bounce.
• Volume surged during the decline, confirming bearish momentum, but turnover began to weaken toward the close.
• Key support at $1.18 and resistance at $1.21 identified using Fibonacci and trend lines.
• Volatility expanded during the early ET selloff, with price closing near the lower Bollinger Band.

Daily Open, High, Low, and Close Summary

At 12:00 ET–1, Nexo/Tether (NEXOUSDT) opened at $1.25, reached a high of $1.261, and dropped to a low of $1.105 before closing at $1.179 by 12:00 ET today. Total 24-hour volume was 3,083,483.81, with total turnover amounting to $3,663,532.36.

Structure and Formations

The 24-hour candlestick pattern for NEXOUSDT displayed a sharp bearish reversal, especially between 19:00 and 22:15 ET, where price plunged from $1.23 to $1.135. A bearish engulfing pattern formed at the top of the move, signaling strong selling pressure. A doji appeared near $1.195 early in the session, indicating indecision, while a bullish reversal pattern emerged toward the close as price recovered from the $1.17 level. Key support levels identified were $1.18 and $1.135, with resistance at $1.21 and $1.24.

Moving Averages and Momentum

On the 15-minute chart, the price closed below both the 20-period and 50-period moving averages, with the 20-SMA at $1.189 and the 50-SMA at $1.195, reinforcing bearish bias. The MACD crossed below the zero line mid-session, confirming the momentum shift. RSI fell below 30 in the final hours, suggesting the pair may be nearing an oversold level, though this could also signal a false bounce in a strong downtrend.

Bollinger Bands and Volatility

Volatility increased sharply during the selloff, with the Bollinger Bands widening. Price closed near the lower band, indicating exhaustion of the downward move. However, the recent rebound suggests that volatility may soon contract, potentially leading to a consolidation phase.

Volume and Turnover Analysis

Volume was highest during the selloff, with the most significant drop occurring between 21:30 and 22:30 ET, where volume spiked to 253,417.58 and 203,627.94. Turnover followed a similar pattern, confirming the bearish momentum. However, after 05:00 ET, volume and turnover began to decline, suggesting weakening seller participation and hinting at a potential reversal or at least a pause in the bearish move.

Fibonacci Retracements

Applying Fibonacci retracements to the $1.26–$1.105 swing, the price found temporary support at the 61.8% level (~$1.18) and briefly tested the 38.2% level (~$1.21) on the rebound. This suggests that $1.18 is a critical support level, with a break below it likely to target the $1.105 level again. On the daily chart, retracement levels align with key trend line supports and resistance, indicating a high probability of price reacting at those levels.

Backtest Hypothesis

Given the recent formation of a bearish engulfing pattern and the price closing near the lower Bollinger Band, a potential short strategy could be triggered at $1.18 with a stop above the 61.8% Fibonacci retracement at $1.21. A profit target might be set at the next support zone at $1.155 or the 100-period moving average. The RSI reaching oversold territory suggests a possible bounce, but volume has shown signs of drying up, which could validate the short setup. A backtest could assess the win rate of shorting after such a setup over multiple sessions.