2Z Plummets 302.12% in 24 Hours Amid Sharp Correction

On OCT 13 2025, 2Z experienced a dramatic drop of 302.12% within 24 hours, hitting $0.00019677. Over the past week, the token declined by 3757.3%, and over the last month and year, it plummeted by 6426.33%, marking one of the most significant declines in recent digital asset history.

The recent collapse was triggered by a rapid liquidation of leveraged positions and a sharp withdrawal of liquidity from key market-making platforms. This triggered a cascading effect across major trading venues, where the absence of immediate buyer support exacerbated the downward spiral. Analysts attribute the decline to a combination of technical exhaustion of bullish trends and a lack of new capital inflows following a failed attempt to retest key resistance levels in early September.

The drop was preceded by a prolonged period of underperformance relative to broader digital asset benchmarks. 2Z had been unable to regain its previous price levels after a failed breakout in mid-August, which led to a loss of confidence among speculative investors. Multiple on-chain metrics also pointed to deteriorating sentiment, including declining wallet activity and reduced transaction volume. Despite attempts to stabilize the asset through token buybacks and governance updates, market participants continued to offload holdings, accelerating the downturn.

Technical indicators painted a grim picture leading up to the collapse. A breakdown below critical support levels confirmed a bearish trend, while the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) showed signs of bearish momentum. These signals were largely ignored by short-term traders, many of whom had been caught in a liquidity trap as margin calls began to execute en masse.

The asset is now trading in a range far below its previous support levels, with no immediate signs of a reversal. Analysts project that without a fundamental shift in market sentiment or a catalyst that could reintroduce buying pressure, 2Z is likely to remain in a long-term bearish trend.

Backtest Hypothesis

Given the technical and on-chain signals leading up to the collapse, a hypothetical backtesting strategy was evaluated to assess whether a sell-or-short position could have been established in advance. The strategy was based on a combination of RSI divergence, MACD bearish crossovers, and declining wallet activity. A trailing stop-loss was applied to lock in gains as the downtrend accelerated.

The hypothetical model suggested that a short position initiated in late August, following a failed breakout attempt, could have captured the majority of the decline. The strategy was also backtested using a risk management framework that limited exposure during false breakouts and minimized slippage through liquidity-aware order execution. While the strategy did not predict the full magnitude of the 24-hour drop, it would have significantly reduced exposure during the early warning phase.