SOMI -72.9% in 1 Day on Sharp Correction Amid Extended Volatility

On SEP 18 2025, SOMI dropped by 37.34% within 24 hours to reach $1.2652, SOMI dropped by 817.16% within 7 days, rose by 15510.58% within 1 month, and rose by 15510.58% within 1 year.

The sharp decline in the past day follows a broader sell-off over the past week, during which the asset registered an 817.16% drop. This significant correction contrasts with strong long-term performance, as it has rallied by over 15,500% over the past month and year. The recent one-day drop has raised concerns about the sustainability of the upward trend and highlighted the asset's exposure to rapid reversals. Traders are now assessing whether this pullback represents a short-term correction or a potential shift in sentiment.

Technical indicators show mixed signals. The RSI has dipped below 30, suggesting the price may be oversold, while the MACD has turned negative after a period of positive momentum. These readings could indicate that the recent drop may be nearing a temporary bottom, although they do not confirm a reversal. The 50-day and 200-day moving averages remain in a bullish alignment, with the shorter-term average above the longer-term, suggesting that the longer-term trend remains intact.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate the effectiveness of a trend-following model that triggers a sell signal when RSI dips below 30 and MACD turns negative. The model is designed to capture short-term corrections while remaining aligned with the broader upward trend, based on the 50-day and 200-day moving average crossover. The strategy would also include a stop-loss mechanism to limit downside risk if the price continues to fall beyond a defined threshold. This approach is intended to test whether systematic exits during overbought conditions can preserve capital during periods of high volatility, without compromising the overall bullish bias.