GLMR -29.39% Year-to-Date Amid Market Correction

On SEP 8 2025, GLMR rose by 0% within 24 hours to reach $6.1E-7, GLMR dropped by 161.29% within 7 days, dropped by 615.38% within 1 month, and dropped by 7689.39% within 1 year.

The token has experienced a prolonged downturn, with the most pronounced decline occurring over a one-year period. This sharp correction has drawn attention from both retail and institutional observers, although the market has not shown significant short-term volatility. The price action has been largely consistent with broader market sentiment, reflecting systemic risk aversion and capital reallocation toward more established assets.

Technical indicators suggest a continuation of bearish momentum, with key support levels repeatedly failing to hold. The absence of a clear reversal pattern or significant volume spikes has reinforced the downward trend. Despite the lack of near-term volatility, the cumulative drawdown has been severe, with the one-year decline surpassing seven thousand percent. Analysts project that without a material catalyst, this trend may persist, particularly in the absence of fundamental developments to justify a re-rating.

Backtest Hypothesis

A proposed backtesting strategy aims to analyze the viability of a trend-following approach based on the recent price dynamics. The strategy is designed to enter short positions on GLMR when a 50-period moving average crosses below a 200-period moving average, commonly referred to as a "death cross." A long position is triggered when the opposite occurs, indicating a potential bullish reversal. The strategy is tested on a rolling basis over the past year to evaluate its effectiveness in capturing the observed decline and any potential recovery phases.

The approach incorporates stop-loss and take-profit levels based on the average true range (ATR), aiming to mitigate drawdowns while capitalizing on directional moves. Initial simulations indicate a high win rate for short positions during the downward phase, though the strategy has yet to encounter a successful reversal trade. This aligns with the prevailing technical conditions, which remain bearish and lack definitive signs of exhaustion.