INIT -410.81% in 24 Hours Amid Sharp Downtrend

On AUG 29 2025, INIT dropped by 410.81% within 24 hours to reach $0.3577, with a 977.95% decline recorded over the last seven days. The monthly drawdown was even steeper at 1552.1%, though the year-to-date performance showed a 7390% rise. The recent sharp price correction has intensified focus on the token’s volatility and potential catalysts for recovery.

The sudden downturn has raised questions among traders and investors about the underlying fundamentals and market dynamics affecting INIT. Analysts project that the token may remain under pressure unless a clear shift in sentiment or on-chain activity emerges. While the one-year gain remains robust, the recent losses have pushed the token into a correction phase, challenging market participants to assess whether the move is a short-term fluctuation or a structural shift.

The token’s technical indicators reflect a bearish momentum. The Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions, while the Moving Average Convergence Divergence (MACD) shows a weakening trend with a narrowing histogram and a bearish crossover. These signals suggest continued downward pressure in the near term, barring a strong reversal in sentiment or new catalysts.

Backtest Hypothesis

A potential trading strategy for INIT could be based on the technical indicators currently in play. If a rule-based approach is used, the following parameters could be tested:

• Trigger: A 10% or greater daily drop in price (close-to-close).
• Entry: Long position initiated on the following trading day.
• Exit: Position closed after 7 days or when price recovers 10% from the entry point—whichever comes first.
• Risk Management: Maximum holding period of 7 days and a stop-loss at 15% below entry price.
• Asset: INIT.
• Timeframe: Back-test from 2022-01-01 to today.

This strategy aims to capture short-term rebounds following sharp declines while limiting downside risk. Given INIT's recent volatility, such a framework could be useful for testing whether the token historically recovers after deep selloffs or if it tends to consolidate at new lows. The MACD and RSI levels suggest the current market is primed for testing such a hypothesis, particularly as they indicate strong bearish momentum.