OPEN -6243.29% in 1 Year Amid Sharp Deleveraging and Network Congestion

On SEP 29 2025, OPEN dropped by 231.88% within 24 hours to reach $0.5396, OPEN dropped by 2447.12% within 7 days, dropped by 6243.29% within 1 month, and dropped by 6243.29% within 1 year.

The asset, previously considered a speculative long-term bet, has seen a dramatic reversal in sentiment. The decline is attributed to systemic deleveraging across decentralized finance (DeFi) protocols, triggering a cascading liquidation of leveraged positions. Network congestion and high gas fees on key execution platforms have further exacerbated the downward spiral, making it increasingly difficult for traders to exit or hedge their exposure.

Analysts project that the current environment reflects a structural shift, with institutional investors moving capital toward more stable, yield-bearing instruments. This has reduced the liquidity pool available for speculative assets like OPEN, compounding the bearish pressure. Intraday trading patterns also indicate a lack of short-term buyers, with the order book showing a sharp depletion of bids above $0.75.

Several technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are currently in deeply oversold territory. However, these readings have historically failed to provide a clear signal for a reversal in this asset class, particularly during periods of high systemic risk. The absence of a bullish divergence or a strong crossover in the MACD suggests that the bearish momentum is not yet exhausted.

Backtest Hypothesis

To evaluate potential strategies in the context of this bearish trend, a backtesting approach was proposed. The strategy involves a trend-following framework that triggers a sell signal upon a 15% intraday drop and a buy signal following a 25% rebound. Stop-loss and take-profit levels are set at 5% and 10%, respectively. This method is designed to capture short-term volatility while avoiding deep drawdowns by exiting early in a downwave.

The strategy incorporates RSI and MACD as confirmation tools. A buy signal is only initiated if the RSI is below 30 and the MACD line crosses above the signal line. Conversely, a sell signal is reinforced when the RSI rises above 70 and the MACD line crosses below the signal line. This approach aims to filter out false breakouts and align trades with the prevailing trend.