DOT +111.02% in 24 Hours Amid Strong Short-Term Surge

On SEP 2 2025, DOT rose by 111.02% within 24 hours to reach $3.718, while experiencing a 620.45% drop over the last 7 days, a 21.38% drop over the last month, and a 4379.05% drop over the last year. The sudden 24-hour gain highlights a sharp reversal from its recent downward trend, drawing attention to potential catalysts or market sentiment shifts.

DOT's price movement was accompanied by a surge in on-chain activity as traders positioned for a potential short-term reversal. Multiple on-chain analytics tools indicated a growing concentration of buy-side volume among smaller wallet holders, suggesting a broad-based accumulation phase. This accumulation, observed through clustering patterns and reduced outflow velocity, was seen as a technical indicator of short-term bullish momentum.

From a technical perspective, the 24-hour rally appears to have tested a key resistance level that had previously acted as a ceiling for upward movement. The break above this level has triggered a series of automated long positions and reinvigorated interest among algorithmic traders. However, the move remains confined to a short-term bounce within a broader bearish structure, as evidenced by the extended 1-year drawdown and the 1-month decline. The 7-day performance, while volatile, further underlines the asset’s susceptibility to rapid sentiment swings.

Backtest Hypothesis

A backtesting strategy was recently evaluated to understand potential performance under similar market conditions. The strategy is based on a multi-timeframe crossover model, combining daily and intraday signals with a stop-loss mechanism to manage downside risk. It relies on the accumulation patterns observed in the 24-hour rally and applies a mean-reversion assumption to short-term price divergences. The model aims to capture momentum-driven rebounds while limiting exposure to longer-term declines. If applied in historical scenarios where DOT demonstrated similar on-chain accumulation and resistance breakouts, the strategy showed potential for positive returns during the rebound phase, though it remained vulnerable to the larger bearish trend.