CELO +364.58% in 24 Hours Amid Volatility Amid Broader Downtrend

On SEP 8 2025, CELO rose by 364.58% within 24 hours to reach $0.3001, while over a one-week period the asset recorded a decline of 92.93%. The one-month and one-year performance of CELO was more pronounced in the downward direction, with a 302.14% and 5363.47% drop respectively. These figures highlight a sharp but recent rebound against a broader bearish trend.

The 24-hour surge suggests a potential reversal or short-term volatility spike, possibly driven by algorithmic trading, news events, or liquidity interventions. However, the subsequent weekly drawdown underscores the continued fragility in the asset’s valuation. Analysts project that short-term spikes may not necessarily indicate a shift in the long-term trend, particularly given the asset's steep historical depreciation. Market participants are advised to assess the sustainability of the recent gains in the context of ongoing macroeconomic and market conditions.

Technical indicators currently show mixed signals. The Relative Strength Index (RSI) has entered overbought territory following the recent surge, suggesting a potential near-term pullback. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in a bearish crossover, indicating that the long-term bearish momentum has not yet abated. These conflicting signals reflect the complex dynamics at play, with traders balancing optimism over the recent upturn with caution regarding broader market sentiment.

Backtest Hypothesis

A backtesting strategy was developed to evaluate the feasibility of capitalizing on the recent CELO price surge and the subsequent correction. The strategy is based on a combination of RSI and MACD indicators to generate buy and sell signals. Specifically, the model triggers a long position when the RSI dips below 30 (oversold condition) and the MACD line crosses above the signal line (bullish crossover). A sell or short signal is generated when RSI exceeds 70 (overbought condition) and the MACD line crosses below the signal line (bearish crossover).

The hypothesis aims to assess whether a rules-based approach could have captured the recent upswing while mitigating losses during the subsequent downturn. By applying the strategy to historical CELO data, including the last 30 days, the model seeks to determine the optimal entry and exit points for trades. The results will provide insight into the potential viability of using technical indicators to navigate CELO’s highly volatile price action.