LAYER -67.28% in 24 hours due to sharp price correction

On SEP 1 2025, LAYER dropped by 67.28% within 24 hours to reach $0.5161, LAYER dropped by 512.3% within 7 days, dropped by 67.28% within 1 month, and rose by 15835% within 1 year.

The decline in LAYER’s price has triggered significant investor attention due to its steep short-term correction. Over the last 24 hours, the token experienced an alarming drop of 67.28%, reaching a price of $0.5161. This sharp decline marks the continuation of a larger downward trend, as the token has lost 512.3% of its value over the past seven days and 67.28% in one month.

Despite the recent bearish momentum, LAYER has shown resilience over a one-year horizon, with a cumulative gain of 15835%. This stark contrast between long-term and short-term performance underscores the token’s volatility and the potential for both substantial risk and reward for traders and long-term holders.

Technical indicators and market sentiment appear to have shifted rapidly. The price action suggests that a critical support level was breached, triggering a cascade of stop-loss orders and liquidations. Traders are now closely watching for a potential bounce or further consolidation at the newly established price level.

Backtest Hypothesis

Analysts have sought to understand the behavior of LAYER on days when its price drops by 10% or more. A backtesting strategy aims to evaluate the historical effectiveness of entering or exiting a position on such event-driven days. This includes assessing the average return over the subsequent 3, 5, and 10 trading days following a 10% decline. To implement this strategy accurately, however, the precise ticker symbol and the exchange on which LAYER is listed must be confirmed. Once this information is secured, historical price data can be retrieved and an event-based backtest can be executed from January 1, 2022, to the present. This will help in assessing whether there are exploitable patterns or consistent market responses to large downward price swings.