PLUME -16.29% on Elevated Trading Volatility and Bearish Technical Indicators

On SEP 25 2025, PLUME dropped by 16.29% in a single trading session, falling to $4.102. The token experienced a 335.29% decline within the last 24 hours and an extreme drop of 1,263.25% over the past seven days. Despite these recent losses, the asset has shown a strong 2,426.89% rise in the last month and a cumulative 983.21% increase over the past year.

PLUME’s sharp intraday move reflects intensified market pressure amid mixed macroeconomic signals and bearish momentum. Short-term traders are reacting to worsening technical indicators such as RSI and MACD, both of which have moved into bearish territory. The RSI has dipped below 30, indicating oversold conditions, while the MACD line has crossed below the signal line, reinforcing the bearish bias. Additionally, the asset has broken below key support levels that had previously held the price in check, increasing the likelihood of further downward movement.

The asset’s recent performance has prompted increased scrutiny from algorithmic traders and quantitative hedge funds, both of which have been adjusting their positions in anticipation of a continuation in the downward trend. These actors have historically leveraged technical analysis and backtesting to refine entry and exit strategies. The current price structure suggests that traders are closely monitoring the $4.00 level as a potential near-term support, with a breakdown below this level likely to trigger further technical selling pressure.

Backtest Hypothesis

A backtesting strategy has been developed to evaluate a set of technical signals for potential trade entries and exits, using historical price data of PLUME. The strategy is based on a combination of moving averages, RSI, and MACD crossover rules. The core premise involves entering a short position when the 50-period moving average crosses below the 200-period moving average (death cross), RSI falls below 30, and the MACD line crosses below the signal line. Exit criteria are defined when any of these indicators reverse in favor of the bullish side, or when the price reaches a predefined stop-loss threshold below a key support level.

This strategy is designed to capture bearish momentum while minimizing exposure to sudden reversals. By applying the strategy to past price data, it is intended to assess the viability of using these signals in a live trading environment. The backtest results will inform whether the combination of these indicators effectively captures downside potential, while also avoiding false signals during bullish phases.