SOMI - -53.69% in 24 Hours Amid Sharp Correction

On SEP 11 2025, SOMI dropped by 53.69% within 24 hours to reach $0.9616, SOMI dropped by 716.08% within 7 days, rose by 9595.2% within 1 month, and rose by 9595.2% within 1 year.

The recent sharp decline in SOMI has drawn attention from traders and analysts as the asset experiences a dramatic pullback after a prolonged and explosive rally over the past month. The 53.69% drop within a single day marks a significant reversal, signaling heightened volatility and potential overbought conditions in the market. Traders are now closely monitoring key support levels and whether the asset can stabilize or if further downward movement is likely.

Technical analysis of SOMI shows the price has moved below critical short-term resistance levels, raising concerns about the sustainability of the recent uptrend. The RSI indicator, which had shown signs of exhaustion prior to the drop, has now moved into oversold territory, suggesting a potential pause or consolidation phase in the short term. However, the broader 1-month and 1-year trend remains bullish, highlighting the long-term resilience of the asset despite the recent correction.

Backtest Hypothesis

To evaluate the potential performance of a structured trading approach in response to SOMI’s recent volatility, a backtesting strategy has been proposed. The hypothesis is built on a set of clearly defined entry and exit rules designed to capture short-term corrections and trend continuation phases.

The strategy is based on a combination of price action and momentum signals. Specifically, it triggers a long entry when the price closes above a 20-period moving average after a pullback of at least 10%, while the RSI has re-entered the 30–40 range. A stop-loss is placed at a fixed percentage below the entry point, and a take-profit target is set at twice the risk level. The exit rule also includes a trailing stop to lock in gains as the price moves favorably.

If applied to the most recent movement in SOMI, this approach would have entered the market after the 53.69% drop, assuming the RSI had stabilized in oversold territory and the price had confirmed a reversal. The strategy’s performance would be evaluated against a historical dataset to test its reliability in similar market conditions. This hypothesis is intended to provide empirical insight into the effectiveness of structured trading in volatile environments and does not constitute a recommendation for future action.