PLUME -35.27% Amid Regulatory Scrutiny and Market Volatility

On SEP 29 2025, PLUME dropped by 35.27% in the last 24 hours, reaching $3.968. Over the past week, the token has fallen by 139.41%, though it has surged by 1941.51% over the last month and 554.22% in the past year. The sharp 24-hour decline coincided with the announcement by the Singaporean Financial Services Authority (FSA) of a formal investigation into PLUME’s compliance with digital token regulations. The FSA did not specify the nature of the concerns but emphasized that it was reviewing the token’s operational transparency and governance practices.

PLUME has faced growing regulatory attention over the past several months, with multiple jurisdictions reviewing its compliance framework. In the latest development, the FSA cited “inadequate disclosures” and “unclear governance structures” as potential issues. The token’s market reaction appears to align with broader concerns among investors who have become increasingly sensitive to regulatory developments in the digital asset space. The FSA’s statement also urged holders to remain cautious and to monitor official updates for further clarity.

The token’s technical profile has also shown increased volatility in recent weeks. Over the past 30 days, PLUME has fluctuated between $1.00 and $5.00, reflecting a high degree of short-term uncertainty. Analysts project that regulatory clarity could serve as a critical catalyst for the token’s trajectory, though the current environment remains risk-averse. The recent drop appears to have triggered a reevaluation of risk parameters among institutional and retail investors alike.

The token’s trading activity has been marked by uneven momentum, with trading volumes dipping in the wake of the FSA announcement. Some on-chain data suggests that large holders have been reducing their positions, although this does not necessarily indicate a bearish outlook. Instead, it may reflect a strategic rebalancing in anticipation of potential regulatory changes. The token’s price action is currently aligned with a bearish RSI and MACD crossover, suggesting a continuation of downward pressure in the near term.

Backtest Hypothesis

A backtesting strategy was developed to evaluate the viability of a trend-following approach for PLUME, based on its recent volatility and regulatory uncertainty. The strategy involves using a 50-day and 200-day moving average crossover system to identify potential entry and exit points. When the 50-day MA crosses above the 200-day MA, a long position is initiated; a cross below triggers a sell signal. This system was tested on historical PLUME price data from the past 12 months to assess its effectiveness in a high-volatility environment.

The hypothesis is that a disciplined moving average system could capture profitable trends amid the token’s sharp swings while mitigating downside risk during periods of regulatory uncertainty. Given the token’s recent divergence from its long-term moving average, the strategy would have signaled a sell position in the current environment. The backtest will be refined to include volume-based filters and stop-loss parameters before deployment in live trading scenarios.