0G Dips 608.96% in 24 Hours Amid Volatile Market Correction

On OCT 4 2025, 0G dropped by 608.96% within 24 hours to reach $3.125, following a 893.35% rise in the past 7 days and a 2385.83% surge in the previous month. Despite the sharp short-term decline, the asset has still managed to post a 2385.83% monthly gain, contrasting sharply with a 3501.34% annual drop.

The recent movement reflects a significant market correction after a prolonged bullish phase. Analysts have noted that the rapid ascent of the last month may have created overbought conditions, prompting profit-taking and triggering a short-term selloff. This behavior is typical in high-volatility assets, where sharp price swings are often followed by temporary reversals.

From a technical perspective, the decline has pushed 0G below key short-term moving averages, including the 10-day and 20-day lines, reinforcing bearish momentum in the near term. However, the longer-term 50-day and 200-day moving averages remain above current levels, suggesting that the broader trend may not have yet turned bearish.

Backtest Hypothesis

A proposed backtesting strategy involves entering long positions when 0G crosses above the 50-day moving average, with a stop-loss set below the 20-day line. This approach aims to capture medium-term bullish momentum while limiting downside exposure during pullbacks. The strategy also includes a take-profit target based on a fixed percentage gain from the entry point, designed to secure returns during upward cycles. Given the recent price action, such a strategy would have captured the 2385.83% monthly rise but would have incurred a loss during the 608.96% 24-hour drop unless modified with additional volatility filters.