Newton Protocol/Tether Market Overview

• Price tested key resistance around 0.1960–0.1970 and retraced lower, ending near 0.1933.
• Volatility expanded during the 18:00–20:00 ET window, with volume peaking at 187,321.4.
• RSI and MACD showed weakening bullish momentum, hinting at potential bearish consolidation.
• Bollinger Bands widened during sharp swings, indicating increased uncertainty and potential for a breakout.
• Turnover diverged with price during the 15:00–17:00 ET sell-off, raising caution over liquidity.

Newton Protocol/Tether (NEWTUSDT) opened at 0.1932 on 2025-10-09 12:00 ET, reached a high of 0.1973, and closed at 0.1933 on 2025-10-10 12:00 ET after hitting a low of 0.1814. The total 24-hour volume was approximately 7,213,106.5, and notional turnover was ~1,403,244.8 USDT.

The price action displayed a bullish surge in the late afternoon (ET), peaking at 0.1973, followed by a sharp pullback into a bearish consolidation. The formation of a bearish engulfing pattern near 0.1970–0.1960 signaled potential reversal risk, while a long lower shadow at 0.1955–0.1969 hinted at support clustering. The 0.1930–0.1940 zone emerged as a key area of interest, with price testing it multiple times and consolidating around 0.1933. The 0.1860–0.1870 level served as a crucial support during the final hours, indicating a possible floor in the short term.

Macroeconomic momentum, as observed via the MACD, shifted from bullish to bearish with a clear bearish crossover, while RSI showed weakening long, dipping to 35 by the close. This suggests a potential exhaustion of buyers and a possible continuation of the downward correction. Bollinger Bands expanded during the 18:00–20:00 ET period, reflecting heightened volatility. Price re-entered the lower half of the bands in the final hours, suggesting a possible retest of the lower boundary. The 20-period EMA currently sits around 0.1945, acting as a dynamic resistance to further declines.

Fibonacci retracement levels from the 0.1814–0.1973 swing suggest that the 0.1930 (61.8%) and 0.1945 (50%) levels are critical for near-term direction. Volume spiked during the consolidation phase but failed to confirm further bearish breakdowns, with divergence noted in the 15:00–17:00 ET window. A break below 0.1910 (38.2%) may trigger further bearish action, while a retest above 0.1950–0.1960 could reignite short-term bullish momentum.

The backtest hypothesis leverages the identified resistance at 0.1960 and the bearish engulfing pattern as a sell signal. A short position would be triggered on a close below 0.1945 with a stop-loss placed above 0.1965. The target is 0.1910–0.1900, based on the 38.2% and 50% Fibonacci retracement levels. This strategy relies on momentum divergence in RSI and volume confirmation during pullbacks. The setup aligns with bearish exhaustion and could provide a risk-reward ratio of approximately 1:2.5.