SOMI -1007.76% in 24 Hours Amid Sudden Market Shift

On SEP 22 2025, SOMI experienced a dramatic 1007.76% price drop within 24 hours, closing at $1.0338. Over the past seven days, the token declined by 1805.69%, contrasting sharply with a 10,982.51% gain over the last 30 days and a 10,982.51% surge over the past year. The recent 24-hour plunge marks one of the most extreme short-term corrections in the token’s trading history, sparking immediate discussions among market observers about potential catalysts.

The sudden drop occurred amid a broader market correction affecting multiple assets. While no official statement was issued by the project team, on-chain analytics suggest a combination of profit-taking from long-term holders and a surge in short-term liquidations. Traders noted unusual trading patterns in the hours leading up to the drop, including a sharp increase in sell orders and a noticeable reduction in buying pressure. Analysts project that the sell-off may reflect a combination of algorithmic trading strategies and market sentiment shifts rather than a fundamental change in the project's viability.

Technical indicators show the price breaking below key support levels following the drop. The Relative Strength Index (RSI) has entered oversold territory, while the Moving Average Convergence Divergence (MACD) histogram has turned negative, indicating bearish momentum. The 50-day and 200-day moving averages are diverging, with the 50-day line now falling below the longer-term average—a classic sign of a potential bear market phase.

Backtest Hypothesis

The technical profile of SOMI suggests a potential for strategic short-term trading. A backtesting strategy focused on RSI and MACD divergence, combined with a fixed stop-loss at key support levels, could have theoretically captured the downward momentum during the 24-hour drop. The strategy would involve entering short positions when the RSI exceeds 70 and the MACD line crosses below the signal line, with stop-loss placed at the nearest support level. If the price continues to trend downward, the position is held until either the RSI drops below 30 or a reversal signal is detected.

The hypothesis assumes that market conditions remain volatile and that liquidity remains sufficient to execute trades efficiently. While the strategy is not predictive of future movements, it illustrates how historical volatility and technical patterns could be leveraged in a controlled, systematic approach.