TREE -3569.11% in 1 Year Amid Regulatory Pressure and Liquidity Challenges

On SEP 12 2025, TREE dropped by 9.45% within 24 hours to reach $0.3177, TREE dropped by 784.2% within 7 days, dropped by 519.87% within 1 month, and dropped by 3569.11% within 1 year.

Regulatory scrutiny intensified against TREE in the past week as multiple enforcement actions were announced against key infrastructure and service providers. These measures limited access to critical banking and payment services, causing a cascade of liquidity issues for investors and traders. The asset’s exposure to centralized financial systems made it particularly vulnerable to policy shifts, with recent enforcement actions signaling a broader crackdown on assets with limited regulatory compliance.

Technical indicators have shown deteriorating market confidence in TREE over recent months. The Relative Strength Index (RSI) has remained below 30 for over three weeks, indicating oversold conditions, while the Moving Average Convergence Divergence (MACD) line has failed to cross above the signal line since March 2025. On-chain metrics also point to a decline in active addresses and transaction volume, further reinforcing the bearish trend. Analysts project that without a significant shift in governance or compliance strategy, TREE will likely continue to trade in a downward channel.

Backtest Hypothesis

A proposed backtesting strategy involves a long-biased approach designed to capture potential rebounds based on historical support and resistance levels. The strategy assumes entry at key Fibonacci retracement levels following major price declines. It uses a time-based stop-loss mechanism with a 10% threshold and a take-profit target at the nearest psychological price level. The aim is to isolate short-term volatility spikes while minimizing exposure to prolonged bearish trends. This approach is built on the assumption that TREE’s price action will exhibit cyclical patterns, particularly when liquidity conditions stabilize or speculative interest returns.