GAS - -92.14% in 24 Hours Amid Sharp Market Downtrend

On SEP 3 2025, GAS dropped by 92.14% within 24 hours to reach $3.435, marking one of the most severe short-term declines in its recent history. Over the past week, the token has fallen by 113.39%, while over the last month, the drop has reached 134.56%. The one-year decline stands at a staggering 2770.06%, reflecting a prolonged bearish trend.

The decline has been attributed to a broader market sell-off and shifting sentiment across the crypto landscape. GAS, a token tied closely to gas fee mechanisms and Layer 2 operations, has historically been sensitive to on-chain activity and transaction demand. However, with on-chain volume declining and broader market conditions deteriorating, the asset has followed a downward trajectory. Analysts project that the token may continue to experience downward pressure unless there is a significant uptick in underlying usage or a broader market turnaround.

From a technical perspective, GAS has broken below critical support levels, triggering a sharp selloff and eliminating short-term bullish momentum. The recent move has erased all gains from previous recovery attempts and placed the token in a prolonged bearish phase. The daily and weekly RSI has entered extreme oversold territory, but historical data indicates that such levels have not traditionally signaled a reversal in the absence of strong fundamental catalysts.

The use of technical indicators such as RSI, MACD, and Bollinger Bands has been integral to understanding the trajectory of the token. These metrics have consistently shown bearish divergence, with price failing to hold above key moving averages. The combination of weak on-chain fundamentals and bearish technical signals has led to a deepening of the downtrend, with no clear signs of a near-term reversal.

Backtest Hypothesis

A proposed backtesting strategy has been outlined based on GAS's recent price behavior and technical indicators. The strategy involves initiating short positions when the 50-day EMA crosses below the 200-day EMA (death cross), while RSI confirms oversold conditions and price remains below key support levels. Stop-loss placement is set at the next level of support, and take-profit targets are based on projected Fibonacci retracements from the most recent bearish impulse.

The hypothesis posits that such a strategy would have effectively captured the downtrend, particularly over the past 30 days, where GAS fell by 134.56%. The backtest would also incorporate trailing stops to lock in gains during any minor bounces, while maintaining a strict risk-to-reward ratio of 1:2. The focus is on capitalizing on the strong bearish momentum without relying on volatile countertrend movements, which have historically failed to produce sustainable reversals in GAS’s case.