SOMI -328.63% 24H Drop Amid Volatile Market Correction

On SEP 25 2025, SOMI dropped by 433.63% within 24 hours to reach $0.8545, SOMI dropped by 2620.14% within 7 days, rose by 7681.04% within 1 month, and rose by 7681.04% within 1 year.

Traders and market observers are analyzing the sharp intraday decline in SOMI, which lost more than 430% of its value in a single day. The drop followed a continuation of downward pressure that had been building over the preceding week, with the token shedding nearly 2600% in seven trading sessions. Despite the recent turmoil, the one-month and one-year performance charts show a dramatic recovery of 7681.04%, indicating that the asset has experienced significant long-term volatility.

Technical indicators show that the recent price action has tested multiple historical support and resistance levels. The RSI, which had previously signaled overbought conditions, is now in overbought territory, suggesting potential exhaustion in the current bearish momentum. However, the MACD is still trending lower, reflecting bearish pressure that may continue to dominate near-term price direction.

Backtest Hypothesis

A proposed backtesting strategy focuses on using the RSI and MACD as dual confirmation signals for market entry and exit. The hypothesis is based on the premise that when the RSI dips below 30 (overbought condition) and the MACD line crosses above the signal line, a long position is initiated. Conversely, when RSI rises above 70 and the MACD line crosses below the signal line, the position is closed. This dual signal approach aims to filter out false breakouts and reduce exposure to noisy market entries.

The strategy would be tested over the most recent 30-day period, which includes the sharp price correction and subsequent rebound. By applying this strategy to historical data, analysts can assess its potential profitability and risk management effectiveness in high-volatility environments. Initial parameters would include a stop-loss of 10% and a take-profit of 20%, with position sizing adjusted based on volatility metrics.

The approach is designed to align with the observed technical patterns, where RSI has shown potential for overbought exhaustion and the MACD has provided directional guidance. If successful, the strategy could offer a framework for managing the high-impact swings that have characterized SOMI's price behavior in the recent past.