FUN -32.34% in 24 Hours Amidst Sharp Short-Term Correction

On SEP 12 2025, FUN dropped by 32.34% within 24 hours to reach $0.008938, marking a sharp correction in the asset’s value. The coin has lost 432.46% in the last seven days and is down by 541.8% over the past month, reflecting a protracted bearish trend. Over the last year, the asset has declined by 1947.75%, underscoring a long-term loss of investor confidence.

Following this dramatic drop, the digital asset community has turned its attention to understanding the technical and fundamental factors behind the recent selloff. Analysts have noted a breakdown in key support levels, suggesting a shift in market sentiment toward risk-off behavior. Multiple on-chain metrics indicate elevated selling pressure, with large outflows reported across major exchange platforms. The rapid depreciation has also triggered forced liquidations, further exacerbating downward momentum.

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The recent volatility is consistent with broader market trends, though FUN has underperformed relative to other assets in its sector. The decline appears to be primarily driven by technical deterioration rather than specific fundamental catalysts. Investors are now scrutinizing whether the current price level represents a temporary bottom or a continuation of the bearish trend. Analysts project that the next critical level of support lies below $0.0080, and a breach could accelerate the downward trajectory.

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A number of key technical indicators suggest that the market may be entering a consolidation phase or a new bearish trend. The 200-day and 50-day moving averages are both in a steep downward slope, indicating continued bearish bias. The Relative Strength Index (RSI) and MACD have both confirmed bearish momentum, with RSI below 30 and MACD lines crossing into negative territory. These signals have been used in the formulation of a backtesting hypothesis aimed at evaluating potential responses to the ongoing trend.

Backtest Hypothesis

The proposed backtest strategy involves a trend-following approach, based on the assumption that FUN will continue its bearish trajectory in the near term. Traders using this model would look to enter short positions when key technical indicators, such as the RSI and MACD, confirm bearish momentum. Stop-loss levels would be placed just above the most recent swing highs, while take-profit targets would be set at predetermined Fibonacci levels and historical support areas. The strategy is designed to capture extended bearish movements while limiting exposure to sudden reversals.

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