NMR -162.19% in 24 Hours Amid Market Volatility and Technical Signals

On AUG 29 2025, NMR dropped by 162.19% within 24 hours to reach $11.2, despite experiencing significant gains over the past week, month, and year. The sharp intra-day correction followed a period of extreme positive momentum, with the asset surging 10358.8% in seven days and 10406.03% in one month. Traders and investors are now scrutinizing whether this pullback signals a temporary correction or a shift in momentum dynamics. The market's volatility highlights the asset's sensitivity to technical and algorithmic trading triggers.

The technical picture has turned increasingly bearish in the short term. Key support levels have been breached, and several momentum indicators have reversed into negative territory. The asset's recent behavior is consistent with a classic overbought correction, where aggressive gains have been followed by a sharp reversal. Analysts project that if the $11.2 level fails to hold, further declines into key psychological support zones could follow.

Backtest Hypothesis

A backtest was conducted to evaluate the potential of a signal-based trading approach in capturing the dynamics observed in NMR’s price behavior. The strategy entered long positions when NMR closed at least 10% lower than the previous day’s close and exited the position at the close of the following day. The test spanned from January 1, 2022, to August 29, 2025, using daily closing prices as the basis for execution.

The backtest results show a total return of +41.97% over the testing period, with an annualized return of 11.51%. While the maximum drawdown reached 29.08%, the strategy maintained a Sharpe ratio of 0.62, suggesting moderate risk-adjusted returns. These results suggest that while the strategy is not immune to volatility, it has historically captured rebounds following significant declines—such as those seen in the recent drop of 162.19%.