0G Down 86.91% in 24 Hours Amid Major Market Correction

On SEP 27 2025, 0G dropped by 86.91% within 24 hours to reach $3.655. Over the past week, the price fell by 2460.24%, marking one of the most severe corrections in recent memory. The decline has persisted over a 30-day and 365-day timeframe, both registering the same percentage drop. The steep and sustained price fall has sparked widespread concern among investors and analysts.

The sharp drop appears to have been triggered by a combination of liquidity crunch and loss of institutional support. Several major stakeholders have reportedly reduced or exited their positions, leading to a cascading sell-off. The decline has been exacerbated by algorithmic trading models reacting to key support levels breaking down, accelerating the pace of the sell-off. Despite a lack of official statements from the project team, market participants suggest the drop is partly due to a lack of confidence in the project’s fundamental progress and governance structure.

Technical analysis reveals that 0G has fallen below critical moving averages, including the 20-day and 50-day lines, further indicating bearish momentum. On the daily chart, the asset is trading in a downward spiral with no signs of near-term reversal. The relative strength index (RSI) has moved into oversold territory, but historically, this has not triggered a reversal in such severe bear markets. The breakdown of key Fibonacci retracement levels has also contributed to the bearish sentiment, with traders taking profits on short positions and triggering further selling pressure.

The Backtest Hypothesis section builds upon the technical indicators discussed above. A proposed backtesting strategy focuses on identifying entry and exit points using RSI divergence and moving average crossovers. The model is designed to capture sell signals when RSI dips below 30 and the 20-day moving average crosses below the 50-day line. The hypothesis assumes that these signals, when combined with volume confirmation, could have mitigated losses or even generated returns during the downtrend. However, given the severity of the correction, the model may struggle to generate profitable trades without incorporating tighter stop-loss parameters or dynamic risk management.