MTL Down 98.45% in 24 Hours Amid Liquidity Crisis and Market Correction

On SEP 3 2025, MTL experienced a sharp decline of 98.45% within 24 hours, dropping to $0.692. Over the past 7 days, the asset fell by 126.23%, while the monthly decline reached 112.36%. Year-to-date, the price has plummeted by an overwhelming 3725.49%. This dramatic correction reflects a combination of liquidity pressures and a broader bearish market sentiment, signaling significant investor concern and instability within the asset.

MTL’s recent performance underscores a severe liquidity crunch, with reports indicating a lack of active market participants and reduced trading depth. The sharp price drop came amid a broader market selloff, though MTL was disproportionately affected. Analysts noted that the asset had been struggling with low trading volumes for several months, which likely exacerbated the volatility during the recent downturn. The absence of institutional support and the reluctance of major traders to step in as buyers have contributed to the steep decline.

The technical indicators suggest that MTL is in a strong bearish phase, with key support levels being breached at a rapid pace. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have both shown significant bearish divergence, aligning with the price drop. Traders are closely monitoring the $0.692 level as a potential short-term floor, though given the current momentum, further declines are a real possibility. The asset has yet to show any signs of a reversal pattern, and the absence of volume spikes on the downturn suggests that the selling pressure is not yet exhausted.

Backtest Hypothesis

A potential trading strategy for MTL, based on the recent technical behavior, involves short-selling the asset once a key support level is breached, with a stop-loss placed slightly above the previous resistance level. The hypothesis is that after a sharp drop of this magnitude and with no signs of a reversal, the continuation of the downtrend is more likely than a reversal. This strategy would also incorporate a trailing stop to lock in gains as the price continues to decline. The backtest would evaluate the strategy over the past six months, assessing how frequently and effectively it would have captured the downward trend.