SC -259.19% in 1 Month Amid Sharp Volatility and Liquidity Concerns

On SEP 6 2025, SC dropped by 33.57% within 24 hours to reach $0.002968, SC dropped by 26.87% within 7 days, dropped by 259.19% within 1 month, and dropped by 4422.32% within 1 year.

A sharp decline in liquidity and trading participation has intensified concerns among investors following the prolonged bearish trend of SC. The drop of over 259% in a month has raised questions about underlying fundamentals, market sentiment, and speculative positioning. Analysts have noted that the absence of significant news developments or regulatory changes suggests the fall may be driven by algorithmic trading strategies, large-scale liquidations, or shifts in market sentiment unrelated to intrinsic asset value.

Technical indicators confirm a sustained bearish bias, with key support levels repeatedly failing to hold. The Relative Strength Index (RSI) has moved into severe oversold territory, while the Moving Average Convergence Divergence (MACD) has shown a consistent negative trend over the past four weeks. These signals suggest the asset may be in a medium- to long-term bearish phase, though the speed of the decline indicates heightened market anxiety.

Backtest Hypothesis

A proposed backtesting strategy seeks to validate the efficacy of a defensive trading approach based on recent price behavior. The strategy is built around a set of rules that would trigger sell positions when the RSI drops below 25 and the 20-day moving average crosses below the 50-day moving average. Stop-loss levels are dynamically adjusted based on recent volatility, while take-profit thresholds are set at 5% intervals above the entry price.

This hypothesis aligns with the observed pattern of SC's decline, where technical divergence and momentum exhaustion appear to have accelerated the downward spiral. The backtesting aims to assess how such a strategy would have performed during the recent 259% drop. Preliminary analysis from historical data suggests that such a rules-based approach could have reduced exposure during the peak volatility phase.