CITY -157.02% in 1 Month Amid Market Reassessment

On SEP 2 2025, CITY dropped by 9.96% within 24 hours to reach $0.987, marking a continuation of a severe downward trend. Over the past month, the asset has seen a staggering 157.02% decline. The broader performance reflects a 137.66% drop in the last seven days and a 4647.81% drop over one year. This sharp depreciation has sparked renewed scrutiny into the underlying fundamentals and the sustainability of the asset's market positioning.

The recent movements in CITY suggest a shift in investor sentiment, likely driven by a reassessment of risk exposure and market expectations. The asset has moved far from previous support levels, indicating a possible breakdown in buyer confidence. Analysts project that the downward pressure is likely to persist until there is a clear indication of structural reforms or a reversal in the broader economic indicators that influence the asset's valuation.

Technical analysis has also shown deteriorating patterns. The RSI has moved into oversold territory, which typically signals the potential for a near-term bounce. However, given the duration and severity of the decline, this metric may be less reliable in predicting a reversal. Additionally, the MACD has crossed below its signal line, reinforcing bearish momentum. These signals are being closely monitored for signs of a potential market pivot, although the current trajectory remains downward.

Backtest Hypothesis

A proposed backtesting strategy involves examining historical price patterns that mirror the current decline in CITY. The strategy is built on the hypothesis that extended bearish trends can be mitigated by implementing a time-based entry and exit system. This approach suggests entering a position only after a defined recovery threshold is met, followed by a stop-loss mechanism to limit downside exposure. The strategy also incorporates trailing stops to capture any potential upward momentum without exposing the position to excessive volatility. The results of such a backtest would offer insight into whether historical corrections could have provided profitable opportunities in a similar environment.