LINEA -3247.47% in 7 Days Amid Sharp Technical Deterioration

On OCT 12 2025, LINEA dropped by 16.21% within 24 hours to reach $0.7379, LINEA dropped by 3247.47% within 7 days, dropped by 3111.55% within 1 month, and dropped by 2274.25% within 1 year.

The sharp selloff has drawn attention from market analysts, who note the absence of a clear catalyst and the deepening divergence between LINEA’s price action and key technical indicators. Multiple bearish patterns have emerged over recent weeks, including a breakdown below key support levels and a failure to retest former resistance as support, which has further confirmed a deteriorating technical outlook. The move down to $0.7379 represents a significant shift in sentiment, as traders appear to be re-evaluating the asset’s long-term prospects.

The current price trajectory reflects an acceleration in selling pressure, with LINEA’s monthly decline now exceeding 3,100%. The asset has not shown any sign of stabilizing, and momentum indicators have moved decisively into negative territory. Traders are closely watching for signs of a potential reversal, although the depth of the decline and lack of buying interest suggest further downside could be in store. The price action aligns with a classical bearish exhaustion pattern, where a prolonged decline is followed by a potential bounce, though this remains speculative in the absence of a clear buying trigger.

Backtest Hypothesis

To assess the feasibility of a short-term reversal, a backtesting strategy is being examined that focuses on momentum divergence and volume confirmation signals. The approach uses a crossover of the 12-period and 26-period exponential moving averages as a primary signal, while incorporating bearish RSI divergence and declining volume as secondary filters. This strategy would have entered short positions during periods of bearish momentum and exited upon confirmation of a potential reversal through a bullish crossover.

The rationale is that LINEA’s recent behavior shows signs of overextended bearish momentum, and the backtest aims to evaluate whether a countertrend move could be viable from a statistical standpoint. While no strategy is foolproof, this backtesting framework is designed to identify high-probability reversal points based on historical price patterns and technical indicators.