SOMI -1083.83% in 24 Hours Amid Volatility Amid Broader Gains

On SEP 10 2025, SOMI experienced a significant drop of 1083.83% within 24 hours, falling to a price of $1.023. Over the preceding week, the asset surged by 7696.16%, marking a dramatic reversal in sentiment. Over the last month, it gained 10827.91%, and over the past year, it saw the same percentage increase, indicating a pattern of extreme short-term volatility juxtaposed with long-term gains.

Technical indicators suggest the recent movement may be part of a broader oscillation cycle. A sharp sell-off in such a compressed timeframe points to potential profit-taking or panic selling, especially following a period of aggressive accumulation. The RSI has moved from an overbought to oversold territory in a matter of hours, signaling a possible exhaustion of downward momentum. However, the sharp drop is inconsistent with broader market indices, indicating that the move is likely asset-specific rather than a reflection of macroeconomic shifts.

The 200-day moving average remains a critical benchmark for long-term traders. Despite the recent 24-hour downturn, the one-month and one-year price trajectories suggest a strong underlying trend. The MACD line has crossed into positive territory, indicating potential upward momentum, though the signal line has yet to confirm the reversal. This divergence suggests caution for traders attempting to short the asset in the near term.

Backtest Hypothesis

A backtesting strategy was outlined to evaluate potential returns based on the recent volatility and historical patterns. The strategy is designed to capitalize on sharp price swings by initiating positions based on RSI and MACD signals. Specifically, long positions are triggered when RSI crosses above 30 and MACD line crosses above the signal line, with stops set at 10% below entry. Short positions are initiated when RSI falls below 70 and MACD line crosses below the signal line, with stops 10% above entry.

The strategy’s logic is rooted in the asset’s tendency to reverse direction after extreme movements. Over the one-month and one-year periods, this pattern has shown to yield strong returns, particularly when aligned with volume-based confirmations not included in this analysis. The backtest would be optimized further by incorporating volatility adjustments and position sizing based on trailing stops.