LINEA +4.69% as Technical Strength and Market Sentiment Drive Recent Gains

LINEA, a prominent player in the decentralized application (dApp) space, has experienced a notable upward trend on SEP 17, 2025, surging by 4.69% within 24 hours to settle at $1.0582. This increase marks a continuation of a broader, multi-month rally, with the token having appreciated by 1250.79% over seven days, 1140.26% in a month, and an impressive 1140.26% year-to-date. The recent movement appears to be driven by strong technical signals and growing investor confidence in the platform’s ecosystem developments.

Technical analysts have highlighted a series of bullish patterns emerging in LINEA’s price action. The token has maintained above key moving averages, with the 50-day and 200-day moving averages aligning in a positive trend. Moreover, the relative strength index (RSI) has remained in the healthy range of 50–60, indicating that the price is neither overbought nor oversold. This balance suggests that the recent buying pressure is being supported by a mix of retail and institutional inflows, with no immediate signs of a reversal.

The growing institutional interest in LINEA has also been underscored by recent developments in its on-chain activity. Notably, the network’s total value locked (TVL) has seen a steady increase, suggesting stronger engagement from both liquidity providers and developers. This on-chain growth coincides with a broader narrative around the platform’s expanding use cases and integration into cross-chain infrastructure. Analysts project that continued development and strategic partnerships could further solidify LINEA’s position in the decentralized finance (DeFi) space.

Backtest Hypothesis

To evaluate the potential sustainability of LINEA’s upward trajectory, a technical backtesting strategy has been proposed. The strategy focuses on a momentum-based model using the moving average convergence divergence (MACD) and RSI indicators. The model triggers buy signals when the MACD line crosses above the signal line and the RSI remains above 50, indicating positive momentum. Sell signals are generated when the MACD line crosses below the signal line or when the RSI exceeds 70, signaling overbought conditions.

The strategy aims to capture the upward trend by entering positions early in the trend phase and exiting before potential corrections. The model also incorporates stop-loss and take-profit levels to manage risk. By applying this approach to historical LINEA data, the backtest would assess whether the recent performance aligns with a repeatable and profitable trend-following pattern.