DOLO -121.98% in 24 Hours Amid Market Volatility

On SEP 27 2025, DOLO dropped by 121.98% within 24 hours to reach $4.447, DOLO dropped by 1627.82% within 7 days, dropped by 6686.5% within 1 month, and dropped by 5074.64% within 1 year.

The dramatic drop in DOLO’s price is attributed to a combination of macroeconomic sentiment and asset-specific vulnerabilities. The token has struggled to maintain a consistent user base and development momentum, as reflected in declining on-chain metrics. The recent sell-off accelerated after a prolonged bearish trend began earlier this year, with no significant positive developments to counterbalance the negative momentum.

From a technical standpoint, the chart now shows DOLO in a severe downtrend with no signs of near-term reversal. Key support levels have been breached, and the RSI and MACD indicators remain in bearish territory. This suggests a continuation of the downward trajectory unless there is a significant intervention or catalyst that could trigger a reversal in sentiment.

The market's response to DOLO’s decline has been largely passive, with minimal buying interest emerging despite the sharp drop. Analysts project further downside risks in the short term unless there is a strategic shift or announcement that could re-engage the community and investors.

Backtest Hypothesis

A backtesting strategy was proposed to assess the viability of a short-selling approach during periods of high volatility in DOLO’s price movement. The strategy incorporates technical indicators such as RSI, MACD, and moving averages to identify potential entry and exit points. The hypothesis is that short positions initiated during overbought conditions, confirmed by divergence in momentum indicators, would yield profitable outcomes given the asset's recent trend.

The strategy would look to enter short positions when RSI exceeds 70, MACD shows bearish divergence, and the price breaks below a key moving average. Exit signals are triggered when the RSI falls below 30 or when the price tests a significant support level without breaking it. This approach aims to capture directional moves during a clear bearish phase without relying on fundamental catalysts.