MIRA Dips 264.65% in 24 Hours Amid Sharp Correction

On OCT 3 2025, MIRA plunged by 264.65% within 24 hours, hitting a price of $0.5965. The token has seen an even steeper decline over the past week, dropping 4690.52%, with a monthly fall of 157.58% and a yearly drop of 5087.66%. These figures signal a dramatic bearish shift in market sentiment and raise questions about the underlying drivers of the sell-off.

The recent drop in MIRA has been attributed to a combination of algorithmic trading pressures and liquidity crunches in its primary markets. Multiple on-chain data sources have observed a sharp reduction in net inflows into MIRA pools, with several large outflows recorded in a short time window. These outflows appear to have been triggered by a cascade of liquidations across leveraged positions, compounding downward pressure on the asset’s price.

Technical indicators have also shifted decisively against MIRA. The 50-day and 200-day moving averages are currently in a steep bearish alignment, with the 50-day line now well below the 200-day line, reinforcing a strong downtrend. Additionally, the Relative Strength Index (RSI) has fallen into oversold territory, indicating a potential short-term rebound may be on the horizon—though this does not necessarily signal a reversal of the broader trend.

The decline in MIRA has outpaced most of its peers in the asset class, with its 1-year drop significantly exceeding average sector performance. This has led to increased scrutiny from market analysts, some of whom are now reviewing the structural aspects of the token’s design and governance model. Analysts project that further price weakness could persist in the short term if liquidity conditions do not stabilize.

Backtest Hypothesis

The backtesting strategy in question applies a mean reversion model based on the 20-day and 50-day moving averages, combined with RSI divergence signals. The strategy entered long positions when the 20-day line crossed above the 50-day line and the RSI moved into oversold territory, while exits were triggered by the opposite crossover and RSI overbought conditions. Historical data from the past year would be used to assess the model’s effectiveness in capturing short-term rebounds within the broader downtrend.

The hypothesis tests whether a purely technical approach could have capitalized on intraday volatility without attempting to forecast the long-term trajectory of MIRA’s price. This is particularly relevant in the context of the recent collapse, where volatility has spiked sharply, creating multiple entry and exit opportunities for high-frequency traders.