HEMI +130.55% in 24 Hours Amidst Technical Reversal Signals

HEMI surged 130.55% within 24 hours on OCT 5 2025, reaching $3.87, amid signs of a potential reversal in its long-term downtrend. The token had previously recorded a 76.73% drop over the previous week and a 76.73% decline over the last month. Despite the recent sharp correction, traders and analysts have noted a divergence in key technical indicators that suggest the bearish momentum may be losing steam.

Following the 24-hour jump, the price action displayed a distinct rejection of prior support levels, with candlestick patterns indicating potential short-term buying interest. The RSI and MACD showed signs of stabilizing, hinting at a possible near-term bottoming process. Analysts have taken note of the reversal signals, with some suggesting the market may be entering a period of consolidation after the extended decline.

Technical assessments of HEMI’s price movement highlight a critical confluence of support levels forming at $3.87, coinciding with a recent 24-hour high. Traders have observed a narrowing of the Bollinger Bands, a pattern often preceding a breakout or reversal. Additionally, the On-Balance Volume has shown a recent uptick, aligning with the price increase and reinforcing the possibility of renewed institutional or algorithmic buying.

While the token has recorded a staggering 3228.62% loss over the past year, the recent volatility has drawn attention from both retail and institutional traders, who are interpreting it as a potential inflection point. The price action has not yet confirmed a full reversal, but the accumulation of bullish signals has increased speculative interest.

Backtest Hypothesis

A backtesting strategy has been proposed to evaluate the effectiveness of entering long positions when HEMI forms a bullish reversal pattern, accompanied by divergence in the RSI and a stabilization of the MACD. The strategy assumes entry upon a close above the 20-day moving average, with a stop-loss placed below the most recent swing low and a target set at the nearest resistance level.

The rationale for this approach is based on the assumption that after a prolonged bearish trend, a strong reversal candle with a long lower wick and a close near the high of the candle can signal short-term momentum turning. This setup is historically associated with trend reversals in volatile assets and has shown a degree of reliability in similar market environments.