STG -153.19% in a Month Amid Sharp Sell-Off

On SEP 3 2025, STG dropped by 61.84% within 24 hours to reach $0.1627, STG dropped by 491.12% within 7 days, dropped by 153.19% within 1 month, and dropped by 5649.7% within 1 year.

The recent decline in STG has drawn attention from traders and investors due to its steep magnitude and rapid onset. The token has faced a consistent downward trajectory in the month leading up to SEP 3, with daily price movements reflecting heightened bearish momentum. This has been attributed to broader market sentiment and a lack of on-chain activity supporting bullish continuation. The 153.19% decline over the month highlights the vulnerability of the asset in current market conditions, where risk-off behavior dominates and liquidity appears to be thinning.

Technical indicators show a deteriorating outlook for STG. The Relative Strength Index (RSI) has fallen well below traditional oversold thresholds, signaling extreme bearish pressure. Similarly, the Moving Average Convergence Divergence (MACD) has displayed a deepening bearish crossover, suggesting a continuation of the current downward trend. These metrics indicate that STG is in a deep bear phase with limited signs of reversal.

Backtest Hypothesis

A proposed backtesting strategy involves identifying key support and resistance levels based on historical price data from the past year, combined with the current technical indicators. The hypothesis assumes that if STG continues to move along its present trajectory, a short-term trade could be initiated just above a critical support level, with a stop-loss placed at a defined price threshold. The target for the trade would be a lower support level or a psychological round number. This strategy aims to capitalize on the continuation of bearish momentum while limiting potential downside risk through tight stop-loss placement. The backtest would need to incorporate historical volatility patterns and adjust for market conditions that may differ from the present, ensuring the strategy is robust across varying market environments.