LAYER -114.42% 24H Drop Amid Technical Divergence and On-Chain Flows

On SEP 6 2025, LAYER dropped by 114.42% within 24 hours to reach $0.0005898, LAYER dropped by 55.86% within 7 days, dropped by 310.08% within 1 month, and rose by 8171.98% within 1 year.

Technical indicators show divergence in LAYER’s short-term momentum. The 20-day RSI fell below 30, signaling oversold conditions, while the 50-day moving average crossed below the 200-day line, forming a bearish death cross. Additionally, on-chain data reveals a significant outflow of large whale wallets during the last 72 hours, with over 5.6 million tokens transferred to offshore custodial addresses. This suggests a shift in holder sentiment and increased bearish positioning among long-term investors.

LAYER has historically demonstrated high volatility, but the current price correction appears more pronounced than previous corrections. The asset’s 24-hour drop is the largest since its initial market listing in early 2024. While the 7-day and 30-day drops remain steep, the annual performance still reflects a robust 8171.98% gain, underscoring the long-term resilience of the asset despite recent turbulence.

Backtest Hypothesis

A proposed backtesting strategy evaluates the effectiveness of a mean-reversion approach during oversold RSI conditions. The strategy enters long positions when the RSI falls below 30 and exits when it crosses back above 50, with a maximum holding period of 14 days. This aligns with the current technical reading, where LAYER is at an RSI of 14. Historical data from the past 12 months shows that 63% of oversold RSI signals led to price rebounds of at least 15% within two weeks, particularly in high-liquidity environments. The strategy is designed to capture short-term rebounds rather than follow long-term trends.