LA -144.69% 24h Drop Amid Technical Downtrend and Liquidity Pressures

On SEP 1 2025, LA dropped by 144.69% within 24 hours to reach $0.3206, LA dropped by 923.68% within 7 days, dropped by 144.69% within 1 month, and dropped by 1502.69% within 1 year.

The sharp 24-hour drop follows a prolonged period of technical deterioration. LA’s price has remained below key moving averages, including the 50-day and 200-day, signaling a deepening bearish trend. The asset has failed to sustain above $0.40 for several weeks, and its inability to reclaim previous support levels has led to increased bearish momentum. This breakdown has also triggered stop-loss orders and forced liquidations across leveraged positions, amplifying the downward spiral.

Analysts project continued downward pressure until a clear reversal pattern emerges. A key level to watch is $0.25, where previous bounces have occurred. Failure to hold this level could push the asset below $0.20, triggering a new wave of technical selling. While no immediate bullish catalysts are present, a sustained rebound above $0.50 could signal the end of the current downtrend and rekindle buying interest.

Backtest Hypothesis

A potential backtesting strategy has been developed to simulate performance based on historical patterns similar to LA's current technical condition. The strategy utilizes a moving average crossover system, where a short-term moving average crossing below a long-term one generates a sell signal, while the opposite crossing generates a buy signal. Additionally, the system incorporates a volatility filter to mitigate false signals during highly volatile periods. The aim is to evaluate whether a disciplined trend-following approach could have captured the recent decline or identified potential entry points after the asset stabilizes. This strategy is being tested using data from the past 12 months to assess its effectiveness in similar market conditions.