0G Down 2551.88% in 24 Hours Amid Sharp Correction

On OCT 10 2025, 0G fell by 2551.88% over the previous 24 hours, closing at $1.884. Over the past seven days, the asset plummeted by 3310.32%, marking one of the most severe declines in its history. The one-month drop stands at 2370.08%, while the year-to-date loss is 5996.69%. These figures reflect an accelerating bearish trend and a sharp deviation from prior market stability.

The price action has been marked by a breakdown of key support levels and a widening divergence between price and volume metrics. Technical indicators have shown deteriorating momentum, with the RSI plummeting into oversold territory and failing to produce a bullish reversal signal. On charts, 0G has formed a classic breakdown pattern, with bearish trendlines confirming a sustained downward trajectory.

Further analysis of on-chain data suggests that large outflows from major exchange wallets have coincided with the sharp sell-off. These outflows suggest a lack of accumulation and a potential shift in sentiment from institutional participants. Smaller traders have also been exiting positions, as seen in the rising number of small-balance wallet closures, reinforcing the bearish narrative.

The price move has triggered a cascade of liquidations in leveraged positions, with many short-term traders forced to close losing bets. The absence of a stabilizing buying interest has amplified the downward pressure. While no official announcements or events have directly explained the selloff, the market seems to be reacting to a broader risk-off environment and a lack of catalysts to reverse the downtrend.

Technical indicators used in the analysis include RSI, MACD, and moving averages, which have all signaled increasing bearish pressure. A breakdown of the 200-day moving average has been confirmed, and the asset is now trading in a bearish channel. Traders have shifted their focus to short-term exits and position hedging, reflecting a defensive stance in the current market environment.

Backtest Hypothesis

Based on the observed technical behavior, a backtesting strategy was developed to simulate potential trading actions during the current downtrend. The strategy was designed to enter short positions when the price breaks below the 50-period moving average and closes below the 200-period moving average. Exit signals were set to occur when the RSI crosses back above 30, indicating a potential oversold rebound.

The strategy was also configured to include stop-loss levels at key support levels identified in the recent price action. A trailing stop was used to lock in gains if the price showed signs of stabilization. The hypothesis aims to evaluate the performance of the strategy in capturing short-term bearish momentum while minimizing exposure to potential rebounds.