DUSK -24.38% in 1 Month Amid Regulatory Uncertainty

On SEP 3 2025, DUSK dropped by 15.87% within 24 hours to reach $0.0622, DUSK dropped by 110.06% within 7 days, dropped by 47.47% within 1 month, and dropped by 7347.11% within 1 year.

The recent sharp decline in DUSK has drawn attention from investors and traders, with the token shedding nearly half its value over the past month. The prolonged bearish trend indicates a deepening sell-off that appears to be driven by a combination of regulatory uncertainty and a lack of bullish catalysts. While DUSK remains relatively liquid on major decentralized exchanges, its inability to stabilize price has raised concerns over its long-term viability within the DeFi ecosystem.

Technical indicators have shown a consistent bearish bias over the past several weeks. The 200-day exponential moving average has acted as a key resistance level, with DUSK failing to break above it in repeated attempts. The RSI remains in oversold territory, yet price has continued to decline, suggesting a lack of immediate support from buyers. This divergence between momentum and price could indicate a broader breakdown in market confidence rather than a short-term correction.

Backtest Hypothesis

To evaluate potential outcomes under recent market conditions, a hypothetical backtesting strategy was proposed. The strategy is built around a moving average crossover model, utilizing the 50-day and 200-day moving averages. The signal is generated when the 50-day MA crosses below the 200-day MA, signaling a bearish reversal. Given DUSK’s recent behavior—where it has remained below its 200-day MA for extended periods—this model would have identified a strong sell signal.

The strategy would also incorporate a stop-loss mechanism to limit downside exposure, placing stops at recent swing lows. Given the current structure of the price action, the model suggests that early exits may have been necessary to prevent larger losses. While the model is simplified, it reflects how traders have approached the recent volatility and could help inform decisions for those looking to manage risk in the coming weeks.