Newton Protocol/Tether Market Overview

• Price rose from $0.246 to $0.2599, with a $0.0139 gain
• High volatility seen between 00:00–03:00 ET, with sharp volume spikes
• RSI suggested overbought conditions in late-night rally
• Bollinger Bands showed contraction earlier, followed by expansion
• Divergence between volume and price occurred in mid-afternoon pullback

Price and Volume Snapshot

Newton Protocol/Tether (NEWTUSDT) opened at $0.246 on September 17, 2025 (12:00 ET), reaching a high of $0.261 before closing at $0.2599 at 12:00 ET on September 18, 2025. The 24-hour volume totaled approximately 6,313,524.8 units, with a notional turnover of $1,565,164.8.

Structure and Candlestick Formations

The price exhibited a strong rally during the overnight hours, forming a bullish engulfing pattern as it broke above key resistance at $0.258. A doji appeared around $0.2545 at 01:15 ET, indicating indecision after a sharp up-move. Later, a bullish flag pattern emerged following the consolidation phase between $0.2572 and $0.2599.

Moving Averages and Trend Direction

On the 15-minute chart, the price consistently traded above both the 20-EMA and 50-EMA after 00:30 ET, suggesting a short-term bullish trend. The daily chart is expected to show the 50-DMA crossing above the 200-DMA if the current rally continues, reinforcing a medium-term bullish signal.

Momentum and Overbought/Oversold Conditions

RSI surged into overbought territory (above 70) during the overnight rally, peaking around $0.26. This indicated potential exhaustion in the upward move, though the price continued higher until 03:00 ET before correcting slightly. MACD showed a strong positive divergence in the early morning, confirming bullish momentum before fading in the mid-morning.

Bollinger Bands and Volatility

Volatility increased significantly from 00:00–03:00 ET, with price expanding beyond the upper band by as much as 2.5 standard deviations. This was preceded by a period of consolidation between $0.256 and $0.258, where the bands had narrowed—indicative of a potential breakout. The price remained within the bands after 05:00 ET, suggesting decreasing volatility.

Volume and Turnover Dynamics

Volume spiked sharply during the overnight rally, with the highest turnover occurring at 00:30 ET when the price surged from $0.2589 to $0.26. This was followed by a secondary volume peak at 02:00 ET as the price pulled back. Notably, volume dipped during the afternoon consolidation, suggesting reduced conviction in the upward trend.

Fibonacci Retracements

A key 0.618 retracement level at $0.2575 provided strong support during the afternoon pullback, which was tested multiple times. On the 15-minute chart, the overnight rally from $0.247 to $0.2599 saw the 0.382 retracement at $0.253 act as a pivot level. If the current trend continues, the 0.786 retracement at $0.2623 may become relevant.

Backtest Hypothesis

Given the presence of a bullish engulfing pattern and a 50-EMA crossover on the 15-minute chart, a backtest strategy could involve entering long positions at the open of the candle following these signals, with a stop-loss placed just below the previous day’s low of $0.246. A take-profit target could be aligned with the 0.618 Fibonacci level of $0.2575 or the upper Bollinger Band. This approach may have yielded favorable risk-reward ratios over the last 24 hours, particularly if combined with RSI divergence confirmation.