1INCH Drops 93.99% in 24 Hours Amid Sharp Volatility

On SEP 6 2025, 1INCH experienced a dramatic 93.99% price decline within 24 hours, plummeting to $0.2437. Despite this sharp drop, the token has rallied 223.53% over the past seven days and surged 12.39% in a month. However, over a one-year horizon, the price has fallen by 3677.62%. The volatility has sparked renewed interest in the token’s short-term performance and technical indicators.

The price action has been marked by pronounced swings, with the 24-hour drop standing out as a key short-term event. Analysts have highlighted the token’s exposure to liquidity shifts and protocol-level changes. While the token has bounced significantly in recent weeks, it remains far below levels seen a year ago. Market participants are closely monitoring whether this correction could represent a setup for a larger reversal, though no definitive signals have emerged yet.

Technical indicators suggest a highly volatile phase for 1INCH. The Relative Strength Index (RSI) has oscillated rapidly, indicating overbought and oversold conditions over a short period. The Moving Average Convergence Divergence (MACD) has also shown divergent signals, suggesting a possible continuation of the downward momentum or a potential bounce in the near term. These indicators are often used in backtesting to gauge the effectiveness of trading strategies in similar market environments.

Backtest Hypothesis

A backtesting strategy has been proposed to evaluate the potential profitability of trading 1INCH during periods of high volatility. The strategy employs a combination of RSI and MACD signals to generate trade entries and exits. Specifically, long positions are initiated when RSI falls below 30 and MACD crosses above the signal line, while short positions are triggered when RSI exceeds 70 and MACD crosses below the signal line. The strategy includes a trailing stop-loss to manage risk during rapid price movements. This approach aims to capture both the downward spikes and subsequent rebounds observed in the token’s recent performance.