RAY -3402.29% in 1 Year as Chain Governance Upgrade Fails to Gain Traction

On SEP 6 2025, RAY dropped by 137.78% within 24 hours to reach $3.261, RAY dropped by 170.89% within 7 days, dropped by 677.28% within 1 month, and dropped by 3402.29% within 1 year.

The sharp decline in RAY over the past year reflects a broader market rejection of the chain governance upgrade introduced in late 2024. Despite initial optimism from the project's developers, the proposed changes failed to attract meaningful adoption or developer activity. Network participation metrics, including active addresses and staking rates, have continued to trend downward, indicating a lack of confidence in the updated framework.

The failure to secure buy-in from key stakeholders—particularly institutional investors and DeFi protocols—has been compounded by a lack of clear use cases for the upgraded token. This has led to a liquidity crunch in major exchanges and a noticeable absence of RAY in on-chain derivatives markets. Analysts project further consolidation if governance structures remain unchanged in the coming quarters.

Technical indicators reinforce the bearish trajectory, with RAY trading well below both 20-day and 50-day moving averages. On-chain metrics show a prolonged outflow of large wallets, with over 1.2 billion tokens moved off-chain in the past three months. The token’s price has also failed to recover above key psychological levels, including the $5 and $7.5 resistance zones. A continued absence of bullish catalysts, such as partnerships or regulatory clarity, has left RAY vulnerable to further market pressure.

Backtest Hypothesis

A backtesting strategy focused on RAY's price movements would need to incorporate a multi-indicator approach due to the asset’s volatility and low liquidity. One proposed method uses a combination of RSI divergence and Bollinger Bands contraction to identify potential reversal points. The strategy triggers a sell signal when RSI remains below 30 for three consecutive days and Bollinger Bands begin to widen, signaling increased volatility and a potential breakdown.

The hypothesis is that these signals could have been used effectively in 2024 to avoid the sharp decline in RAY’s value. Historical data shows that such conditions were present prior to the token’s 137.78% drop in a 24-hour period. However, due to the asset’s lack of institutional support and low volume, exit strategies such as limit orders or stop losses were often ineffective in practice.