ONT -3157.98% in 1 Year Amid Sharp 24-Hour Drop

ONT experienced a dramatic price movement on August 31, 2025, recording a 167.42% drop in 24 hours to trade at $0.1719. Over the past 7 days, the stock slid by 1152.95%, while a 1404.03% increase was observed over the prior month. However, the 1-year performance remains heavily negative, with a cumulative loss of 3357.98%.

The recent volatility reflects a continuation of a long-term bearish trend. Despite a brief recovery in the previous month, the downward momentum has reasserted itself in a pronounced manner. This sharp correction has raised concerns among investors about the sustainability of ONT’s long-term recovery and the potential for further downside in the near term.

From a technical perspective, the stock has seen multiple significant downward spikes over the past three years, with the most recent drop being among the most severe. The price has now retested key support levels that were previously breached in earlier corrections. These levels, if held, may offer temporary respite from continued selling pressure, but a break below them could trigger a deeper sell-off.

Backtest Hypothesis

To better understand the implications of such sharp corrections, an event-based backtesting strategy was implemented, focusing on days where ONT.L experienced a 10% or greater one-day price decline between January 1, 2022, and August 31, 2025. The results indicated that five such events occurred over the period.

On average, the stock continued to underperform in the 30 trading days following each event, with a cumulative return of -8.58%. The probability of a price rebound above the event-day level remained below 40% throughout the 30-day window, indicating a strong bearish bias post-decline. Notably, the second trading day after a 10% drop showed the most significant negative return (-5.60%), suggesting a lack of immediate stabilizing mechanisms in the market.

This suggests that investors should exercise caution when entering or holding positions following a major price decline in ONT.L, as the historical data indicates a high likelihood of continued downward movement in the near term.