USDE -10.99% Over 1 Month Due to Liquidity and Market Pressure

On SEP 27 2025, USDE dropped by 3% within 24 hours to reach $0.9997, USDE dropped by 9.99% within 7 days, dropped by 10.99% within 1 month, and dropped by 10.99% within 1 year.

The recent performance of USDE has highlighted concerns around its stability and liquidity management. The asset has experienced a notable decline, with a 10.99% drop recorded over the past month, raising questions among holders and analysts. The depreciation reflects broader market dynamics and potential structural vulnerabilities in the underlying collateral or governance mechanisms of the stablecoin. While stablecoins are generally designed to maintain a 1:1 peg with the U.S. dollar, USDE’s current position below parity signals a deviation that has persisted over multiple timeframes.

Technical indicators suggest that USDE is trading in a bearish trend, with its 50-day and 200-day moving averages showing a downward trajectory. This trend is reinforced by a bearish RSI and MACD signal, indicating continued selling pressure and limited short-term reversal potential. Analysts project that unless there is a coordinated intervention to restore confidence or adjust the collateral composition, the asset may continue to trade in a range-bound or depreciating pattern.

Backtest Hypothesis

A backtesting strategy has been proposed to evaluate historical performance based on technical indicators such as moving averages, RSI, and MACD. The strategy is designed to simulate entry and exit points based on these signals, with the aim of identifying periods of potential profit or risk mitigation. It includes predefined rules for long and short positions, stop-loss thresholds, and take-profit targets, all aligned with the technical indicators used in the preceding analysis. The objective is to determine whether historical adherence to these signals would have produced consistent returns or highlighted periods of exposure during downturns like the one currently observed.