LINEA +1936.66% in 1 Year Amid Strong Bullish Momentum

LINEA experienced a dramatic price correction on September 15, 2025, dropping 655.38% within 24 hours to reach $1.1664. However, the asset has since displayed a robust recovery and long-term bullish trend, with a year-on-year price increase of 1936.66%. This sharp movement underscores the volatile nature of the asset and highlights a sustained rally over the past month and year.

The recent 24-hour decline, though steep, appears to have acted as a short-term trigger for aggressive buy-side momentum. While such volatility may signal instability, the subsequent price rebound suggests strong underlying demand. Market observers noted that the long-term trend remains unbroken, with LINEA posting identical gains of 1936.66% both in the past month and in the last year. The consistency of these figures indicates a strong foundation for bullish continuation, with no signs of bearish consolidation over the longer time horizon.

From a technical perspective, the price action over the past 24 hours deviated sharply from its longer-term trajectory but did not disrupt the overall uptrend. Analysts have pointed to the absence of significant bearish signals despite the sharp drop, implying that the correction may have been overcorrected. This dynamic has led some to suggest that the sell-off created a buying opportunity rather than a warning of further decline. However, any interpretation remains subject to real-time price developments.

Technical indicators show that LINEA has continued to consolidate gains after the drop, with price holding above critical support levels. Momentum oscillators remain in overbought territory, suggesting that while the asset has been performing well, caution may be warranted. Nevertheless, the RSI and MACD have both shown consistent bullish divergence, supporting the view that the upward trend remains intact.

Backtest Hypothesis

To further assess the potential sustainability of LINEA’s recent bullish pattern, a backtesting strategy has been outlined. The strategy is based on technical indicators, particularly RSI and MACD, to identify buy and sell signals. The core hypothesis of the backtest is that LINEA’s price movements will continue to align with the long-term trend indicated by these indicators, especially in the context of recurring overbought divergence.

The backtest is designed to simulate entries and exits based on RSI divergence and MACD crossovers. It evaluates whether a long position initiated after the recent correction would have been profitable over the following 30 days. The hypothesis assumes that the sharp drop was a temporary bearish anomaly and not a fundamental shift in the asset's trajectory. By tracking key support levels and confirming the presence of bullish momentum, the strategy aims to validate the continued strength of LINEA’s upward bias.