LINKJPY -429.82% in One Month Amid Sharp Technical Deterioration

On SEP 6 2025, LINKJPY dropped by 51.67% within 24 hours to reach $3280, LINKJPY dropped by 129.67% within 7 days, dropped by 429.82% within 1 month, and rose by 2108.77% within 1 year.

The one-month decline of 429.82% has triggered a series of bearish signals in the technical landscape. Multiple key support levels have been broken in recent weeks, and the price has now entered a volatile consolidation phase near $3280, with no immediate signs of a reversal. Analysts project that the continued weakness could push the price further into uncharted territory if no significant bullish catalysts emerge in the near term.

The 50-day and 200-day moving averages have both crossed below the current price, forming a death cross that is often interpreted as a bearish confirmation in technical analysis. In addition, the Relative Strength Index (RSI) has entered oversold territory, though historical data shows that extended periods in oversold conditions do not necessarily equate to an imminent price rebound. These indicators suggest prolonged selling pressure and a lack of immediate buyer participation, contributing to the asset's continued depreciation.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate the potential viability of short-term trades during periods of technical deterioration. The strategy is based on a combination of RSI divergence detection and moving average crossovers, specifically targeting entry points following a breakdown below the 200-day moving average. The hypothesis posits that such a setup could offer opportunities to capture directional moves in either a short or long bias, depending on the broader market context. The plan also incorporates a stop-loss mechanism at a predetermined support level and a take-profit target aligned with the nearest resistance zone. This approach is designed to validate whether systematic trading based on these technical triggers could yield consistent returns over a defined historical window.