OPEN -3868.34% in 7 Days Amid Sharp Technical Deterioration

OPEN has experienced a dramatic decline in price over the past seven days, plummeting by 3868.34% as of SEP 26, 2025. The drop followed a steep 24-hour fall of 13.42%, bringing the asset to $0.5946. Over the last month, the price has declined by 5853.13%, and the same percentage was recorded over the past year. This sharp and sustained downturn has intensified scrutiny around the asset's technical indicators and long-term viability in the market.

Technical analysis has highlighted a pronounced bearish trend. Multiple key support levels have been breached without meaningful counter-momentum, leading to a breakdown in investor confidence. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have both exhibited severe bearish signals, reinforcing the downward trajectory. The lack of stabilizing factors in the short term has contributed to a lack of short-term buyers, allowing the price to continue its decline.

The prolonged decline has also drawn attention to broader structural weaknesses. Several on-chain metrics suggest a lack of liquidity and a shrinking base of active participants. The absence of large buyer activity has resulted in an imbalance between supply and demand, further deepening the bearish bias. These factors combined have created a negative feedback loop, where falling prices drive further selling pressure and reduced market participation.

The deteriorating technical landscape has led to a reassessment of market positioning among institutional and retail participants. With no immediate catalysts for recovery apparent, the risk of continued price erosion remains high. Analysts project that without a significant reversal in momentum or external market interventions, the bearish trend is likely to persist in the near term.

Backtest Hypothesis

A proposed backtesting strategy seeks to analyze the effectiveness of a bearish trading approach using the observed technical conditions. The strategy is based on the use of RSI and MACD as entry and exit signals. When RSI drops below 30 and MACD lines cross below the signal line, the strategy triggers a short position. A stop-loss is placed at the nearest resistance level, while a take-profit is set at the next significant Fibonacci retracement level.

The goal of the backtest is to determine whether the strategy could have captured a portion of the recent decline. Historical data from the same time frame would be used to simulate performance and measure returns against a benchmark. This approach aims to validate whether technical indicators effectively identified the bearish trend and whether they could be leveraged in a systematic trading framework.