DOLO -4741.85% in 1 Month Amid Regulatory Pressure and Market Sentiment Shift

On SEP 5 2025, DOLO dropped by 9.89% within 24 hours to reach $7.059, DOLO dropped by 4741.85% within 7 days, dropped by 4741.85% within 1 month, and dropped by 2184.01% within 1 year.

Recent developments have highlighted a growing regulatory scrutiny against DOLO’s underlying operations. Authorities have reportedly intensified investigations into potential compliance breaches, triggering immediate concerns among institutional and retail investors. The move has been perceived as a direct threat to DOLO’s business model and has led to a rapid withdrawal of liquidity from the asset class. No official statements from the company have been released, but the market response has been swift and severe, resulting in a prolonged bearish trend.

From a technical standpoint, DOLO’s price trajectory has formed a clear descending channel, with key support levels breaking sequentially over the past month. The 200-day moving average, previously a psychological barrier for the asset, has now turned into a resistance, failing to provide any meaningful support. Momentum indicators such as the RSI and MACD have both confirmed a deepening bearish bias, with RSI reading below 30 and MACD showing a widening negative divergence. These signals suggest that the asset remains in a structurally weak position, with limited near-term upside potential unless a fundamental shift in sentiment occurs.

Backtest Hypothesis

A backtesting strategy has been designed to evaluate a systematic approach for managing exposure during a prolonged downtrend. The strategy uses a combination of technical signals, including a 50-day and 200-day moving average crossover, alongside RSI divergence to time potential short entries. The hypothesis posits that during a strong bearish phase, such as the current one, the strategy could have captured a significant portion of the downside move without relying on market timing. The strategy aims to minimize losses by enforcing strict stop-loss levels while allowing for a trailing exit upon the first signs of reversal.