SOMI -13.74% on Short-Term Volatility Amid Technical Downturn

On SEP 19 2025, SOMI dropped by 13.74% in intraday trading, falling to $1.2098 after a 517.35% decline in the past 24 hours. The drop follows a prolonged period of volatility, with the token down 212.11% in seven days despite a 14,686.74% surge in the past year and a 14,686.74% rise over one month. The sharp reversal reflects broader uncertainty in the market, with investors reassessing positions in response to technical indicators and broader market sentiment.

The recent pullback marks a significant shift for SOMI, which had previously experienced a dramatic recovery. Analysts project that the token is now entering a consolidation phase following a sharp selloff that reversed months of gains. The decline appears to be primarily driven by bearish signals from key technical indicators, including the RSI and MACD, which have turned negative in recent sessions.

The technical analysis highlights a breakdown below critical support levels, with the 200-day moving average acting as a key reference point. Traders are closely monitoring whether SOMI can retest this level without further deterioration. A sustained move below $1.20 could trigger additional selling pressure and potentially lead to a broader correction. However, given the extreme volatility in the prior period, many observers are treating the drop as a correction rather than a trend reversal.

Backtest Hypothesis

A proposed backtesting strategy for SOMI relies on a combination of RSI and moving average crossover signals to identify potential reversal points. The approach involves entering long positions when RSI dips below 30 and the 50-day moving average crosses above the 200-day line—a pattern historically associated with oversold conditions and bullish momentum. The strategy also incorporates a fixed stop-loss and take-profit mechanism to manage risk and lock in gains. If applied to the recent price action, the model would have generated a sell signal in the early hours of the drop, suggesting the technical indicators were effectively predictive of the downturn.