SOMI Drops 1027.81% in 24 Hours Amid Sharp Price Correction

On SEP 21 2025, SOMI experienced a dramatic price correction, dropping by 1027.81% within 24 hours to reach $1.0405. Over the past seven days, the asset declined by 1823.96%, reflecting a sharp short-term bearish trend. However, broader timeframes tell a different story: within one month and one year, the price of SOMI surged by 10935.72%, underscoring a highly volatile and unpredictable market trajectory.

The recent price plunge has drawn attention to the structural volatility characterizing SOMI’s performance. The one-day drop far exceeds typical market corrections, signaling a potential market reevaluation or liquidity squeeze. Analysts have highlighted the disparity between short-term and long-term performance as a key factor for investors to consider, particularly in terms of risk exposure and position sizing.

From a technical perspective, the price movement indicates a breakdown from previous resistance levels and a retest of key support zones. The steep 24-hour decline raises concerns about underlying market sentiment and possible overleveraged positions triggering automated sell-offs. The 7-day decline further amplifies the bearish momentum, though it is important to note the stark contrast with the 1-month and 1-year positive returns.

Backtest Hypothesis

To evaluate the potential effectiveness of a strategy during such volatility, a backtesting framework has been outlined. The hypothetical strategy is built on a set of clearly defined technical indicators, including moving averages and RSI divergence, to identify potential entry and exit points. It is designed to capitalize on momentum shifts and to hedge against rapid price swings by incorporating stop-loss and take-profit levels. The approach assumes that the asset's volatility is both a risk and an opportunity, and it aims to optimize risk-reward ratios by leveraging historical volatility patterns. This strategy will be evaluated against historical price data to assess its potential viability under similar market conditions.