POWR -38.46% on Elevated Short-Term Volatility and Liquidity Constraints

On SEP 6 2025, POWR dropped by 181.14% within 24 hours to reach $0.1578, POWR rose by 76.92% within 7 days, dropped by 144.2% within 1 month, and dropped by 4262.77% within 1 year.

The recent 24-hour decline represents the most dramatic drop in POWR’s price in recent memory, following a sharp intraday sell-off that overwhelmed liquidity mechanisms. The move followed a sustained period of volatility, where the asset saw a 76.92% increase in just one week, suggesting a speculative rally that failed to stabilize. Analysts project that such volatility may be attributed to an uneven balance between buyer and seller pressures, with large-scale liquidation orders contributing to the rapid price dislocation.

The technical setup preceding the drop was marked by a breakdown in key support levels and a failure to maintain a bullish RSI trajectory. Traders observed a divergence between price action and momentum indicators, which signaled a weakening of the upward trend. The 76.92% rise in a week was followed by a sharp reversal, with price falling below critical Fibonacci retracement levels. These technical indicators were used as the foundation for a backtesting strategy that attempts to model exit points and risk thresholds.

Backtest Hypothesis

The proposed backtest strategy evaluates a mean-reversion approach based on the RSI divergence and price-volume imbalances observed in the preceding week. The hypothesis assumes a short-entry trigger upon the RSI dropping below 30, with a stop-loss set at the 20-period exponential moving average. The strategy would close positions once the RSI crossed above 50 or if the price declined 10% from entry. Given the sharp move observed on SEP 6, the strategy would have captured the initial shorting opportunity but may have been forced to exit early due to the rapid 24-hour decline. The test seeks to measure the viability of using RSI divergence in a high-volatility environment where liquidity constraints are a key factor.