A2Z -16.78% as Technical Indicators Signal Bearish Momentum

On SEP 12 2025, A2Z dropped by 35.22% within 24 hours to reach $0.006231, A2Z rose by 359.46% within 7 days, rose by 994.35% within 1 month, and rose by 2447.51% within 1 year.

The recent sharp correction in A2Z has sparked renewed scrutiny from traders and analysts, who are examining the underlying market dynamics and technical signals contributing to the decline. The movement reflects a shift in investor sentiment, which appears to have turned bearish following a series of mixed signals from on-chain activity and recent price behavior.

Technical indicators suggest a weakening trend in A2Z’s price action. The RSI has moved into oversold territory, suggesting the asset may be due for a short-term rebound, but without confirmation from the moving average convergence divergence (MACD), the signal remains ambiguous. Additionally, the 50-period and 200-period moving averages have begun to diverge, signaling potential resistance ahead if bullish momentum does not return.

The downward momentum has triggered multiple stop-loss orders and has raised concerns among traders who had entered long positions in the wake of the recent sharp rally. Analysts project a consolidation phase is likely before any meaningful rebound, with price action expected to remain volatile as the market digests the recent corrections. Some traders are also keeping a close eye on liquidity levels, noting that A2Z’s recent price movements have exposed vulnerabilities in the order book depth.

Backtest Hypothesis

The proposed backtesting strategy focuses on leveraging key technical indicators to model A2Z’s potential future price behavior. The strategy is built on a dual approach using RSI and MACD, aiming to capture both short-term overbought/oversold conditions and longer-term momentum shifts. The RSI threshold is set at 30 for oversold conditions and 70 for overbought, while the MACD crossover is used to confirm trend direction. A buy signal is generated when the RSI enters oversold territory and is followed by a positive MACD crossover, with a sell signal initiated when the RSI moves into overbought conditions and the MACD line crosses below the signal line.

The strategy also incorporates a trailing stop-loss mechanism to manage risk and lock in gains during volatile periods. Historical performance of this strategy would provide insights into its viability in both bullish and bearish environments, particularly during sharp corrections such as the one seen in early September 2025. This approach aligns with the current technical environment, where divergence in moving averages and a weak RSI suggest that traders may benefit from a more cautious, signal-driven approach.