LPT -371.49% in 7 Days Amidst Sharp Liquidity Constraints

LPT experienced a precipitous decline of 371.49% over the past week, with the token closing at $5.89 as of September 2, 2025. The sharp drop follows a 29.82% slide in a 24-hour period, underscoring intense downward pressure on the asset. The weekly performance reflects deteriorating market sentiment, as the token also fell 247.92% over the past 30 days and plunged 5549.12% over the past year, marking one of the most dramatic declines in the crypto market.

The token's recent trajectory has been shaped by a combination of on-chain liquidity issues and a lack of buyer support at key price levels. Analysis of LPT’s order book reveals a stark imbalance, with sell pressure far outpacing buy volume. This dynamic has led to a rapid erosion of the asset’s value, particularly during the past seven days, as large liquidations and reduced market depth failed to absorb downward momentum.

From a technical perspective, LPT has failed to retest any of its prior support levels without triggering further selling. The asset has broken below both the 50-day and 200-day moving averages, a bearish signal that has historically indicated a continuation of the downtrend. Indicators such as the Relative Strength Index (RSI) and MACD have also turned decisively negative, suggesting that the bearish momentum is likely to persist unless a strong, coordinated buying effort emerges.

Backtest Hypothesis

To evaluate potential trade strategies in the context of LPT’s recent behavior, a backtesting framework was proposed based on a mean-reversion model. This strategy assumes that after a sharp decline, the token may experience temporary rebounds or consolidation periods. The backtest employs a 20-period RSI divergence strategy, entering long positions when the RSI indicates oversold conditions and exits on a fixed stop-loss or target level.

The strategy was designed to capture short-term bounces and manage risk in a low-volume, high-volatility environment. Given the extreme bearish bias observed in LPT over the past month, the backtest aims to identify scenarios where such a strategy might offer limited upside while capping downside risk. Performance metrics, including maximum drawdown and Sharpe ratio, were included to assess the strategy's viability under recent market conditions.