0G Down 150.82% in 24 Hours Amid Sharp Short-Term Volatility

On OCT 8 2025, 0G dropped by 150.82% within 24 hours to reach $2.805, marking one of the most severe short-term declines in its recent performance. The drop came amid a broader 1617.91% decline over the past seven days. Despite this, the token has recovered significantly in the longer term, with a 1055.12% rise over the past month. Over the course of a year, however, the asset has lost 4199.55% of its value, underscoring the extreme volatility and challenges in maintaining consistent momentum.

The sharp drop in 0G’s price over the past 24 hours has drawn attention from observers and participants in the market. The decline followed a period of heightened activity and speculation, which had previously driven the price upward. Analysts have pointed to a combination of factors, including reduced liquidity, shifting market sentiment, and broader macroeconomic pressures. While the immediate trigger for the drop remains unclear, the rapid correction has sparked renewed discussions about the sustainability of speculative trading strategies in the space.

Technical indicators suggest a bearish short-term outlook for 0G. The Relative Strength Index (RSI) has fallen into oversold territory, while the Moving Average Convergence Divergence (MACD) histogram has turned negative and shows a significant divergence from the price action. The 50-day moving average has crossed below the 200-day moving average, reinforcing the bearish signal and potentially indicating a prolonged downward trend.

Backtest Hypothesis

Given the recent price action and the technical signals, a backtesting strategy was developed to assess potential outcomes. The strategy focused on using the RSI and MACD as primary signals, with entry triggers set when the RSI moved below 30 (oversold) and the MACD histogram turned positive. Exit triggers were based on a closing price breaking below the 20-day moving average, indicating a resumption of bearish momentum. The hypothesis was that entering a long position on a confirmed oversold signal would result in a short-term rebound before the trend resumed downward. The strategy aims to capture countertrend bounces while minimizing exposure to further declines.