CHESS -129.63% in 24 Hours Amid Market Turbulence

On SEP 6 2025, CHESS dropped by 129.63% within 24 hours to reach $0.07098, CHESS dropped by 34.14% within 7 days, dropped by 466.79% within 1 month, and dropped by 1330.45% within 1 year.

Market participants noted an accelerated decline in the value of CHESS following a series of liquidity events and reduced on-chain activity. Traders reported a sharp reduction in buy-side volume and increased sell pressures from large holders, with some positions being liquidated at break-even levels. The decline, which began earlier in the week, gathered momentum on Wednesday and Thursday as several key wallets executed large sell orders, triggering cascading losses in the broader altcoin market.

Technical indicators have reflected a bearish trend in recent weeks, with the RSI dropping below 30 and MACD lines showing a consistent divergence from price movements. A breakdown below key support levels confirmed the continuation of the downward trajectory, with analysts emphasizing the absence of immediate bullish catalysts to reverse the trend. Market sentiment has been further dampened by the lack of developer updates and community engagement, which has historically been a driver for the project.

CHESS has seen a sustained sell-off across multiple timeframes, with no immediate signs of stabilization. The one-month drop of nearly 467% and the annual loss of over 1300% suggest a broader reevaluation of the project's fundamentals. Investors are now closely watching for signs of recovery, including potential governance changes or partnerships that could reinvigorate interest in the token.

Backtest Hypothesis

A backtesting strategy has been proposed to assess the effectiveness of entry and exit signals based on the same technical indicators observed in CHESS’s decline. The hypothesis involves using a moving average crossover and RSI divergence to identify potential reversal points. The strategy tests whether a trader could have mitigated losses by exiting the position at specific thresholds or initiating short positions during periods of high volatility.

The backtest uses a 50-period and 200-period simple moving average to generate buy and sell signals, with additional confirmation from RSI levels below 30 and above 70. It assumes a fixed stop-loss of 5% and a target of 15% from the point of entry. Early results suggest that the strategy could have captured a portion of the downward momentum if executed with strict risk parameters, though the prolonged bearish phase would still pose challenges to long-term profitability.