Maker (MKR) Falls 110.77% in 24 Hours Amid Sharp Correction

On August 29, 2025, Maker (MKR) experienced a dramatic 110.77% drop in a 24-hour period, trading at $1,597.40. Despite this sharp near-term decline, the token demonstrated resilience in the broader time frame, rising by 41.44% over the past 7 days. Over the last 30 days, however, it has suffered a steep 2275.74% decline. In contrast, the one-year price performance was significantly positive, with an increase of 232.57%. This mixed performance highlights the token’s susceptibility to volatility amid shifting market sentiment.

Technical indicators and market structure suggest a continuation of the downward momentum in the near term. The price has broken below key support levels, confirming a bearish shift in short-term dynamics. While the token has shown robustness on a weekly and annual basis, the recent sharp pullback suggests that momentum traders may be prioritizing risk-off strategies. The 24-hour movement underscores the heightened sensitivity of MKR to broader market corrections and liquidity events.

The token’s performance is being closely monitored for signs of recovery and potential support level retests. Traders are observing whether the current price action will consolidate or trigger further sell-offs. Analysts project that MKR could face continued pressure until it finds a sustainable base, with short-term buyers likely to enter only on a meaningful reversal in sentiment or on a rebound to key moving averages.

Backtest Hypothesis

To test the viability of strategies based on sharp price movements, a structured backtest has been proposed. The hypothesis is designed to evaluate the performance of a buy signal triggered when the price drops by at least 10% in one day. Specifically, a “BUY” signal is generated at the next session’s open if the close price is 10% lower than the prior session’s close. Once triggered, the position is held for five trading days or exited earlier if a stop-loss or take-profit level is reached. A stop-loss is set at 8% below the entry price, and a take-profit at 10% above it. The test spans from January 1, 2022, to August 29, 2025, using daily OHLCV data for MKR-USD.

This strategy aligns with the recent 110.77% drop in MKR and aims to assess how well a rule-based approach could capture or mitigate such volatility. Given the sharp near-term drop, the strategy is designed to test both its potential as a risk-mitigation tool and its effectiveness in capitalizing on rebounds from significant downswings. The backtest will be executed using actual market data, ensuring its relevance to real-world trading conditions.