IOTX Dips 309.49% in 24 Hours Amid Sharp Correction

IOTX plunged 309.49% in a single day on AUG 29 2025, settling at $0.02901. This sharp drop followed a broader 70.47% decline over seven days and a 252.51% slump within a month. The token’s year-to-date fall stands at 2651.89%, indicating a severe bearish trend that has accelerated in recent weeks. The correction reflects a market-wide selloff amid heightened bearish sentiment and reduced investor confidence in the token’s near-term trajectory.

The recent sell-off has drawn attention from both retail and institutional observers, with many analyzing technical indicators to determine potential support levels and reversal signals. The 200-day moving average has acted as a resistance, while the Relative Strength Index (RSI) has remained in oversold territory for much of the past two weeks. Traders are closely monitoring for a potential bounce, though the depth of the correction has made short-term stability unlikely. Analysts note that the current price path is inconsistent with any prior bullish trends and is more in line with a deeper structural shift in investor sentiment.

Technical traders have been focusing on key levels, including the $0.03 support, which has historically held during previous downturns. However, with liquidity conditions tighter and trading volume subdued, any attempted bounce may lack the strength to reverse the overall downtrend. The MACD histogram has shown prolonged bearish divergence, and the Bollinger Bands remain compressed, suggesting a continuation of low volatility and sideways consolidation is possible.

Backtest Hypothesis

A proposed trading strategy is being explored to analyze potential responses to the recent volatility in IOTX. The hypothesis is centered on a mean-reversion approach triggered by sharp price declines. The strategy is defined by the following parameters:

1. Event Definition: A “down 10%” day is defined as when IOTX’s daily close falls at least 10% compared to the prior day’s close.
2. Entry Rule: A long position is opened at the next day’s open following a qualifying down 10% day.
3. Exit Rule Options:
   a) Close the position after 5 calendar days.
   b) Close the position when the price rebounds by 10% from the entry price, or after 30 days—whichever occurs first.
4. Optional Risk Controls:
   Traders may add stop-loss and take-profit parameters or specify a maximum holding period beyond the exit rules.
5. Back-Test Window: The test will cover the period from January 1, 2022, to August 29, 2025.

The strategy aims to identify whether a structured response to sharp sell-offs could yield positive returns in the volatile IOTX environment. If confirmed, this approach may offer insights into whether historical corrections have offered reliable entry points in this token.