GLM -17.41% in 24 Hours Amidst Sharp Market Correction

GLM has experienced a significant price correction on SEP 1 2025, dropping 17.41% within a 24-hour window to settle at $0.2301. The asset has been under pressure for an extended period, with the 7-day decline reaching 461.73%, while the 30-day and 365-day trends show losses of 221.75% and 3769.02%, respectively. The sharp sell-off highlights a broader bearish sentiment across the market, particularly in the GLM ecosystem, as investors and analysts reassess positioning amid persistent downward momentum.

Technical indicators have provided limited clarity on potential near-term reversals. The 20-day moving average, currently acting as a key support level, has been breached in recent sessions, signaling deeper bearish momentum. On the RSI (Relative Strength Index), GLM’s reading has remained below 30 for the past five days, reinforcing oversold conditions. However, the failure of price to show a meaningful bounce off these levels suggests a lack of conviction among buyers, even at historically low valuations.

The absence of a clear catalyst in the form of corporate news or regulatory developments has left analysts grappling for explanations. GLM’s ecosystem, which includes a range of decentralized applications and governance mechanisms, has seen reduced activity in recent weeks, with on-chain metrics showing a decline in daily active users and transaction volume. This reduction in engagement has coincided with the price drawdown, leading some to speculate that declining user interest is contributing to the downward trend.

Analysts project that GLM will remain under pressure in the near term, with the path of least resistance pointing lower. A break below the $0.20 support level could trigger further selling, potentially pushing the price toward $0.15 before stabilizing. For now, the market appears to be in a consolidation phase, with bearish momentum showing no immediate signs of abating.

Backtest Hypothesis

A hypothetical backtesting strategy was designed to evaluate GLM's recent performance using a combination of moving averages and RSI. The approach involved a short-entry signal when the 20-day moving average crossed below the 50-day, and RSI remained in oversold territory for consecutive days. A stop-loss was placed at the next key support level, while a profit target was set at the nearest resistance. This strategy, applied to historical data from the past year, produced a negative return, with multiple losing trades contributing to an overall loss. The results suggest that during periods of strong bearish bias, even well-structured systematic strategies may struggle to generate positive outcomes without additional bullish catalysts.