PLUME -44.15% Amid Sharp Corrections and Rising Volatility

On SEP 25 2025, PLUME dropped by 44.15% within 24 hours to reach $4.012, following a steep 733.88% decline in the last 24 hours. Over the past week, the asset fell by 1623.57%, though it has rebounded 1914.38% in the last 30 days and surged 530.24% over the past year. This dramatic correction has reignited investor scrutiny and prompted a reassessment of both fundamental and technical underpinnings.

The recent correction is notable for its speed and magnitude, with PLUME shedding nearly 75% of its 24-hour value. Analysts have attributed the drop to a combination of profit-taking and algorithmic selling pressure, though no single catalyst has been identified. While the one-year and monthly gains remain intact, the short-term volatility raises concerns about the asset’s stability and risk profile. Investors appear to be repositioning portfolios ahead of potential further market shifts.

Technical indicators have begun to reflect the broader sell-off. The 50-period moving average has crossed below the 200-period line, forming a bearish “death cross” pattern. RSI levels have dropped below 30, signaling oversold conditions, while MACD lines have diverged sharply from the price action. These indicators collectively suggest a potential continuation of the downward trend, though divergences between momentum and price may indicate a near-term bottoming process.

Backtest Hypothesis

A proposed backtesting strategy evaluates the effectiveness of a dual-moving average crossover system combined with RSI divergence signals. The system would initiate short positions when the 50-period SMA crosses below the 200-period SMA and RSI shows bearish divergence (price rising while RSI falls). Stop-loss and take-profit levels are dynamically adjusted based on the 14-day average true range (ATR). In this framework, the recent drop aligns closely with expected behavior under bearish market conditions, offering potential validation for the strategy in volatile environments.