VANA -116.86% in 24 Hours Amid Sharp Decline in Volatility and Liquidity

On AUG 31 2025,

The dramatic price depreciation of VANA has drawn attention to structural market pressures affecting the token. Over the past month, the asset has exhibited signs of extreme bearish momentum, with significant outflows and signs of waning interest from both retail and institutional participants. Analysts project that the decline has been driven by a combination of reduced liquidity and a broader shift in market sentiment toward more established assets.

Despite the absence of major on-chain governance updates or significant project developments during the period in question, the token's price path suggests a lack of stabilizing forces within the ecosystem. The absence of major interventions or capital injections has allowed downward momentum to persist, with key technical indicators reflecting a deteriorating trend. The asset’s inability to reclaim prior support levels has further exacerbated bearish sentiment among market participants.

Technical indicators suggest that VANA has failed to establish a new equilibrium at current levels. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have both remained in bearish territory for the past several weeks. These readings, combined with the sharp drop in on-chain activity and a lack of significant buy-side pressure, indicate that the market may still be in a phase of consolidation and re-rating.

Backtest Hypothesis

The technical indicators observed in VANA’s performance have formed the basis for a backtesting strategy aimed at identifying early signs of trend continuation or reversal. By applying a rules-based system to historical price action and volume metrics, the strategy seeks to determine whether a defined set of signals could have provided early warning of the prolonged decline. The backtesting model evaluates the efficacy of using RSI and MACD crossovers as entry and exit points, with the objective of capturing the full extent of the bearish phase while minimizing exposure during periods of consolidation.