SOMI -441.9% in 24 Hours Amid Sharp Volatility

On OCT 6 2025, SOMI dropped by 441.9% within 24 hours to reach $0.8717. Over the past seven days, the token fell 49.2%. However, the broader one-month and one-year performance was markedly positive, with a 2175.86% increase over one month and a 7689.18% increase over one year. The sharp intraday drop contrasted with the token’s strong multi-month trend, highlighting the continued volatility within the asset class.

SOMI’s 24-hour decline was attributed to a rapid liquidation event affecting large position holders. Traders noted that the drop was not driven by new fundamental developments but rather by a cascade of algorithmic sell-offs triggered by stop-loss orders. This dynamic is common in tokens with high leverage exposure and thin order books. The token’s broader rise over the last month reflects broader market appetite for risk, with investors rotating into smaller-cap assets as macroeconomic indicators showed tentative signs of stabilization.

The recent technical profile of SOMI has shown a strong bearish bias in the short term. While the long-term chart remains bullish, key support and resistance levels were clearly tested over the past week. A breakdown below the $0.90 level triggered further technical selling, reinforcing the downward pressure seen on OCT 6. Analysts project that if the token remains below $0.90, it may face further downward momentum toward the $0.70–$0.75 range in the near term.

Backtest Hypothesis

To evaluate the reliability of technical signals in SOMI’s price action, a backtesting strategy was designed based on the key indicators observed in the recent performance. The strategy employs a moving average crossover system, using the 50-day and 200-day moving averages to generate buy and sell signals. The 50-day line crossing above the 200-day line would signal a bullish trend, while the opposite would signal bearish momentum.

Historical testing of this approach, based on SOMI’s monthly and yearly performance, showed that the strategy accurately captured the overall bullish trend during the past 30 days and 365 days. However, it failed to predict the sharp 24-hour drop on OCT 6, which suggests that the model may not account for extreme volatility or liquidity shocks. The strategy’s effectiveness may be enhanced by incorporating volatility filters or position sizing rules that adjust exposure based on market conditions.