ONT -42.83% in 24 Hours Amid Market Pressure

ONT experienced a significant drop of 42.83% within 24 hours on SEP 2 2025, plummeting to a price of $0.1906. Over the past week, the token declined by 730.9%, marking a dramatic shift in its market trajectory. The 1-month decline widened further to 484.31%, and the 1-year cumulative loss reached an alarming 3932.14%. These figures reflect a severe bearish trend and heightened volatility in the token’s price performance.

Market participants have closely observed the token’s technical indicators in recent sessions. The RSI has dropped into oversold territory, suggesting potential for a short-term rebound. However, the 50-day moving average remains well above the current price, indicating a broader bearish bias. Traders are also watching the MACD line, which has crossed below the signal line, reinforcing the downtrend. These metrics, combined with the sharp price fall, suggest that ONT may face continued downward pressure unless a reversal pattern emerges.

Technical analysis indicates that ONT’s recent movements are in line with a classic bearish continuation pattern. The price has failed to hold above key resistance levels that were previously identified in earlier analysis. This has led to a widening gap between short-term and long-term moving averages, contributing to a more pessimistic outlook among active traders. The absence of a clear support level further compounds the uncertainty surrounding the token's near-term direction.

Backtest Hypothesis

A recent backtesting strategy has been developed to assess the viability of a trend-following approach in the context of ONT’s sharp decline. The strategy is based on a crossover model using the 10-day and 50-day moving averages. When the 10-day line crosses above the 50-day line, it signals a potential buying opportunity. Conversely, a cross below is interpreted as a sell signal. This model is designed to capture medium-term price swings in a declining trend.

The strategy is applied using a fixed stop-loss and take-profit structure to manage risk and reward. The stop-loss is placed at 3.5% below the entry price, and the take-profit is set at 5.5% above. The time frame for each trade is limited to 7 days to reduce exposure to prolonged volatility. A maximum of three positions are allowed per week, ensuring diversification and reducing the impact of single trade failures.

This hypothesis is intended to test the robustness of trend-following assumptions in a declining market environment. Given the current price trajectory, the backtest aims to determine whether such a strategy could have mitigated losses or captured any short-term rebounds during the recent selloff. The results will be used to refine further trading models and understand the token’s behavior under extreme volatility.