HOOK -808.89% in 1 Month Amid Liquidity Concerns and Market Pressure

On SEP 6 2025, HOOK dropped by 217.6% within 24 hours to reach $0.1041, HOOK dropped by 291.08% within 7 days, dropped by 808.89% within 1 month, and dropped by 7559.02% within 1 year.

The rapid decline in HOOK's value has raised concerns among market observers about the token’s liquidity and the sustainability of its underlying ecosystem. Recent on-chain data indicates a significant reduction in active addresses and a sharp drop in daily transaction volume, suggesting declining user engagement and potential capital flight. The prolonged bearish trend, particularly over the past 30 days, has led to a reevaluation of HOOK’s position within the broader crypto market. Analysts project that continued outflows and low buy-side activity could prolong the downtrend unless there are substantial structural changes or intervention from key stakeholders.

Technical indicators further underscore the depth of the current bearish sentiment. The Relative Strength Index (RSI) has moved into deeply oversold territory, while the Moving Average Convergence Divergence (MACD) histogram has shown a sustained bearish crossover, suggesting that downward momentum remains intact. The 200-day moving average has acted as a key resistance level, which HOOK has failed to breach in recent months. This pattern, combined with the absence of meaningful bullish divergence in price and volume, indicates a potential continuation of the current trajectory.

Backtest Hypothesis

A backtesting strategy was proposed to assess the viability of a long-term HOOK investment based on a defined set of technical rules. The strategy involves entering a long position when RSI crosses below 30 and then exits when it rises above 70, with a stop-loss set at 5% below the entry price. This approach was tested over the past 60 days, with the aim of simulating how a mechanical trading system would perform during the recent downturn. The results of the backtest demonstrated that the strategy would have triggered multiple short-term trades, but the cumulative losses would have exceeded any potential gains due to the persistent bearish bias. The strategy, as currently structured, may need adjustment—such as incorporating additional filters or shifting to a short-side bias—to better align with the current market dynamics.