SOMI -38.15% in 24 Hours Amid Sharp Volatility Shift

On SEP 26 2025, SOMI experienced a dramatic 38.15% drop within a 24-hour window, closing at $0.8398. This follows a 2715.54% decline over the past seven days, but contrasts with a 6997.56% surge recorded over the last month and a 6997.56% increase over the past year, highlighting the extreme volatility characteristic of the asset. The movement suggests a potential reversal of a short-term bullish trend, with traders recalibrating positions amid shifting sentiment.

The sharp decline appears to have been driven by a combination of profit-taking following a significant short-term rally and a reevaluation of broader market conditions. Analysts project that such volatility may continue in the near term, as SOMI remains exposed to high sensitivity in market dynamics. There has been a noticeable withdrawal of speculative capital into more stable assets, contributing to the downward pressure observed over the past day and week.

Technical indicators have shown mixed signals. Short-term momentum has weakened, reflected in bearish divergence on RSI and MACD. The 50-day and 200-day moving averages suggest a potential continuation of a long-term upward trajectory, but short-term oscillators indicate overbought conditions are reversing. This divergence between short-term and long-term indicators has created uncertainty among traders, resulting in increased caution and liquidity withdrawal.

Backtest Hypothesis

A backtesting strategy was designed to evaluate potential responses to the recent volatility in SOMI. The strategy relies on technical indicators such as RSI, MACD, and moving averages to identify potential reversal points and manage risk exposure. It involves entering long positions when the 50-day moving average crosses above the 200-day moving average (a bullish signal) and exiting when the RSI indicates overbought conditions. Stop-loss orders are set at key support levels identified from prior price action. This framework aims to capture long-term bullish momentum while mitigating risk during short-term corrections like the recent 24-hour drop.