Newton Protocol/Tether USDt Market Overview: Bullish Momentum and Volatility Expansion

• Newton Protocol/Tether USDt (NEWTUSDT) closed 0.2585 on 2025-09-05 after a 24-hour high of 0.2655 and a low of 0.2492.
• Price formed a bullish recovery pattern in late morning ET with key support at 0.2543 and resistance near 0.2607.
• Momentum improved in the RSI, while volume surged in early hours, confirming upward price action.
• Volatility expanded with Bollinger Band width, and price closed above the 20-period moving average.
• A divergence between price and turnover suggests mixed participation but confirmed key breakouts.

Newton Protocol/Tether USDt (NEWTUSDT) opened at 0.2543 on 2025-09-04 at 12:00 ET, reached a high of 0.2655, and a low of 0.2492, closing at 0.2585 on 2025-09-05 at 12:00 ET. Total volume for the 24-hour period was 5,249,047.8 and notional turnover reached $1,357,693.65. Price showed significant volatility and a strong recovery in late morning trading.

Structure & Formations

The 15-minute chart revealed multiple key support and resistance levels. A significant support level appeared at 0.2543, where the price found repeated buying interest during the early part of the session. On the upside, the first line of resistance emerged at 0.2607 and 0.2626, where the price stalled after strong bullish momentum. A notable bullish engulfing pattern formed around 05:30 ET, indicating a shift in market sentiment from bearish to bullish.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart showed a positive cross at approximately 0.2570, reinforcing the bullish bias. On the daily chart, the 50-period MA was at 0.2563, and the 200-period MA at 0.2547, indicating a long-term bullish trend with price well above both.

MACD & RSI

The MACD line crossed above the signal line in the early morning hours, confirming a bullish momentum shift. RSI rose from 40 to 58 over the day, suggesting moderate strength without reaching overbought territory. However, price divergence between the RSI and volume was observed in the late morning, indicating mixed conviction.

Bollinger Bands

Volatility expanded sharply, with Bollinger Bands widening as price traded between the lower and upper bands. Price closed near the middle band, suggesting balanced buying and selling pressure. The band width increased by over 20% from the previous day, signaling heightened uncertainty.

Volume & Turnover

Volume surged sharply at 00:15 ET, with a 15-minute volume of 1,342,658.8, the highest in the 24-hour window, confirming the bullish breakout. Notional turnover also spiked during this period, reaching $346,529.95. Later, volume declined into the afternoon and evening, suggesting reduced participation in the rally. A volume divergence occurred during the 02:30–02:45 ET period, where price rose but volume declined, indicating weak confirmation of the bullish move.

Fibonacci Retracements

Fibonacci levels were drawn from the 0.2492 low to the 0.2655 high, with the 0.2607 level aligning with the 61.8% retracement. This level acted as a minor resistance, and price found rejection there before continuing higher. On the daily chart, the 38.2% level at 0.2566 was tested twice and held, indicating strong intermediate-term support.

Backtest Hypothesis

A potential backtest strategy could involve entering a long position on a bullish engulfing pattern formation at key Fibonacci retracement levels when RSI crosses above 40 and MACD confirms the bullish crossover. A stop-loss could be placed below the 20-period moving average or the last significant support level, while a take-profit could be set at the next Fibonacci level or key resistance. This approach would aim to capture the momentum of a breakout confirmed by volume and technical indicators, with risk management tools to protect against false breakouts.