DOLO -1291.35% 24H Drop Amid Sharp Correction

On SEP 23 2025, DOLO dropped by 1291.35% within 24 hours to reach $4.652, DOLO dropped by 2938.58% within 7 days, dropped by 6553.34% within 1 month, and dropped by 4876.7% within 1 year.

The dramatic sell-off has raised questions among market observers about the underlying causes of such an extreme correction. While no official explanation has been provided by DOLO’s team, the speed and severity of the price movement suggest a combination of internal and external factors. Recent on-chain data has shown a sharp decline in active wallet addresses and liquidity, indicating a potential loss of institutional or large holder confidence. Analysts project further downward pressure in the near term unless a catalyst emerges to stabilize the asset.

From a technical standpoint, DOLO’s price has broken below key support levels, triggering a bearish pattern typically associated with high-conviction selling. The asset now appears to be in a freefall phase, with short-term indicators—such as RSI and MACD—confirming oversold conditions. However, this has yet to attract significant buying interest, suggesting a lack of short-term reversal signals.

Backtest Hypothesis

A proposed backtesting strategy seeks to evaluate the viability of a market reentry following such an extreme correction. The strategy involves a long position triggered by a 20-period RSI crossing below 20, with an exit point set at a 10-period RSI crossing back above 40. Stop-loss is placed at the most recent swing low, while take-profit is set at a fixed 20% return. The hypothesis is that DOLO may retest oversold levels, offering a potential entry point for long-term holders seeking to capitalize on a recovery.