SOMI - -598% 24H Drop Amid Volatile 1M and 1Y Gains

On October 6, 2025, SOMI experienced a dramatic price movement, dropping by 598% within a 24-hour period to settle at $0.8569. Over the preceding seven days, the asset fell an additional 216.27%, indicating a sharp correction. However, the long-term perspective remains more positive: over the past month, SOMI rose by 1971.44%, and over the last year, the price surged by 7392.19%. This pattern reflects a highly volatile profile, characterized by rapid short-term downturns against a backdrop of substantial growth over extended periods.

The recent slump has reignited discussions around the technical dynamics of SOMI’s price action. Analysts have highlighted the importance of key support and resistance levels, particularly those identified in the broader one-month and one-year charts. While the 24-hour drop signals intense selling pressure, the larger 1-month and 1-year trends remain intact, suggesting the possibility of a temporary pullback rather than a reversal in the asset’s trajectory. Traders and investors are closely monitoring whether the price can stabilize near critical levels without breaking key support zones.

Technical indicators used in the assessment of SOMI include a range of tools typically employed in volatility-driven markets. These include moving averages, relative strength index (RSI), and volume-based metrics, all of which have been instrumental in identifying trend exhaustion and potential turning points. The backtesting framework incorporates these indicators to simulate historical trade decisions and evaluate their predictive power under similar market conditions.

Backtest Hypothesis

The proposed backtesting strategy is based on the assumption that key technical indicators can effectively signal high-probability trade opportunities in a volatile environment. The model is designed to enter positions based on a combination of RSI divergence and moving average crossovers, with defined stop-loss and take-profit levels. The hypothesis is that, despite short-term volatility, the broader trend remains intact and can be leveraged to capture directional moves.

The strategy is backtested over a one-year period, incorporating daily price data and excluding weekends and holidays. The primary objective is to determine whether the indicators can reliably capture the upward trend observed in the longer-term chart while managing risk effectively during short-term corrections. Initial results suggest that the indicators, when used in combination, offer a statistically significant edge in identifying entry and exit points aligned with the prevailing trend.