AXL -59.6% on Sharp Technical Deterioration and Market Sentiment

On SEP 1 2025, AXL dropped by 201.12% within 24 hours to reach $0.2904, AXL dropped by 344.38% within 7 days, dropped by 201.12% within 1 month, and dropped by 5412.87% within 1 year.

AXL’s price action has deteriorated significantly in recent weeks, marked by a sharp break below key support levels and a loss of bullish momentum. The recent 24-hour drop of 201.12% has pushed the token into a bearish technical setup, with price now trading well below the 200-day and 50-day moving averages. On the weekly chart, the 344.38% decline over the past seven days highlights the severity of the sell-off, with no signs of near-term stabilization in the technical structure.

The token has failed to hold above critical psychological thresholds, with the 0.40 level now acting as a distant resistance after multiple attempts to rebound. Analysts project further downside risk if the 0.20 level is breached, which would trigger a reevaluation of the mid-term price target. The move below the 0.50 zone has also invalidated the prior bullish case based on consolidation patterns, shifting the sentiment decisively to bearish.

Backtest Hypothesis

A backtesting strategy has been developed to evaluate the effectiveness of a short-biased trading approach based on AXL’s recent technical deterioration. The model triggers a short signal when price breaks below both the 20-day and 50-day moving averages and confirms the breakdown with a closing below the 20-day line. A stop-loss is placed at the most recent swing high, and the exit is determined by either hitting a 30% profit target or a 50% stop-loss threshold. The strategy incorporates a trailing stop for managing long-term drawdowns and is optimized for a high-frequency trading approach over weekly and monthly timeframes. This hypothesis aims to simulate the performance of a disciplined bearish strategy aligned with the observed breakdown in AXL’s technical structure.