ALCX Drops 42.37% in 24 Hours Amid Volatile Market Conditions

On SEP 6 2025, ALCX dropped by 42.37% within 24 hours to reach $9.34, following a 85.84% increase over the past seven days. The token, however, has continued to experience prolonged depreciation, dropping by 319.26% in the last month and 4907.91% over the past year. This recent sharp drop has reignited investor concerns around ALCX's short-term stability and longer-term viability.

ALCX’s recent 24-hour decline has been attributed to a combination of bearish momentum and heightened market sensitivity. Technical indicators such as the RSI and MACD have both signaled overbought conditions prior to the drop, followed by a rapid reversal into oversold territory. These signals, combined with a significant drawdown in on-chain metrics like transaction volume and active wallet count, have prompted a reassessment of market positioning.

The token’s performance over the past week has shown signs of a sharp rebound from the trough of the 24-hour drop, indicating a degree of short-term resilience. However, this recovery has not been enough to offset the broader negative trend over the past month. Analysts have pointed out that the 7-day rise could be a temporary countertrend move rather than a reversal of the overall bearish trajectory.

Despite these short-term fluctuations, the longer-term technical picture remains bearish. The token is currently trading below both its 50-day and 200-day moving averages, and the Bollinger Bands are tightly constricted, suggesting a period of consolidation or potential breakout. Traders and investors are closely monitoring whether ALCX can hold above the recent support level of $9.34 or if it will continue its downward trajectory.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate whether a set of technical indicators—namely RSI, MACD, and moving averages—could have been used to predict or manage the recent price action. The hypothesis assumes that a buy signal is generated when the RSI crosses below 30 and the MACD line crosses above the signal line. A sell signal is triggered when RSI exceeds 70 and MACD line crosses below the signal line. The strategy also includes a stop-loss of 10% and a take-profit of 20%. This model is designed to assess the efficacy of using technical indicators to navigate the high volatility in ALCX's price movements.