LINEA -108.77% in 7 Days Amid Short-Term Correction Amid Long-Term Bullish Momentum

On OCT 4 2025, LINEA dropped by 82.42% within 24 hours to reach $1.1483, LINEA rose by 108.77% within 7 days, rose by 652.32% within 1 month, and rose by 1947.12% within 1 year.

The recent decline in LINEA’s price reflects a sharp correction in the wake of a month-long rally that saw the token surge over 650%. While the 24-hour drop was abrupt, the seven-day recovery suggests that market participants are still broadly bullish on the asset’s long-term trajectory. The price fluctuation underscores the high volatility often associated with digital assets, particularly those in the early stages of broader adoption.

Technical analysts have closely monitored the chart for potential inflection points. The asset’s one-year performance has seen a 1947.12% increase, positioning it among the top performers in its category. This sustained growth has drawn attention from both retail and institutional investors, despite the recent short-term volatility. Analysts project that the correction may be a normal part of the cycle as the market absorbs rapid gains.

Backtest Hypothesis

To assess the potential effectiveness of trading strategies in line with LINEA’s recent price dynamics, a structured backtesting approach is often employed. One such approach involves using a mean reversion strategy based on the RSI and moving average crossover signals. The strategy is designed to capture corrections and trends, using the 14-day RSI to identify overbought or oversold conditions and a 50-day/200-day moving average crossover to detect trend direction.

The hypothesis is that entering a long position when RSI drops below 30 and the 50-day moving average crosses above the 200-day moving average could yield favorable returns over the short to medium term. Conversely, a short position would be initiated when RSI rises above 70 and the 50-day moving average crosses below the 200-day moving average, aiming to capitalize on overbought conditions and bearish momentum.