CITY -97.66% in 24 Hours Amid Sudden Market Correction

On SEP 6 2025, CITY dropped by 97.66% within 24 hours to reach $1.023, marking one of the most dramatic intraday corrections in its recent history. Over the preceding week, the token had surged by 99.6%, but the sharp reversal in sentiment over the last day suggests a rapid reversal of market positioning.

Market participants observed a sudden loss of liquidity and an imbalance in trade execution, with large sell orders overwhelming the order book. The token’s 1-month drop of 49.07% and 1-year decline of 4589.11% were already indicative of a struggling asset class, but the single-day collapse brought renewed scrutiny to the underlying fundamentals and governance mechanisms of the protocol.

Technical indicators showed a breakdown in key support levels, with the price failing to hold above the 50-period and 200-period moving averages. The RSI and MACD both showed bearish divergences, reinforcing the likelihood of further downward pressure in the short term.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate the feasibility of managing such volatile assets through automated trading rules. The strategy employs a momentum-based approach that activates sell orders when the RSI crosses below 30, and buy signals are triggered when the 50-period moving average crosses above the 200-period moving average. Stop-loss mechanisms are integrated to limit drawdowns, with a 10% trailing stop used for short-term trades. The backtest is designed to be applied to historical data of CITY over the past 12 months, with the goal of testing whether such a systematic approach could have mitigated the recent single-day crash or identified early signs of reversal.