SOMI Dropped 426.16% in 24 Hours Amid Volatile Market Activity

On SEP 14 2025, SOMI experienced a dramatic 426.16% drop in value within 24 hours, closing at $1.2897. This sharp decline followed a period of significant gains, with the asset rising by 1382.43% in the preceding seven days, and surging by 16596.83% over the past month and year. The sudden price reversal has drawn attention from traders and analysts, highlighting the unpredictable nature of the asset's performance.

SOMI’s recent behavior suggests a potential reversal in momentum, despite an overall long-term upward trend. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) showed signs of exhaustion and bearish divergence earlier in the week, hinting at a potential pullback. The RSI, which had been in overbought territory, dipped below 30 in the hours preceding the sharp drop, signaling a shift in market sentiment. The MACD line also crossed below the signal line, reinforcing the bearish outlook.

The recent decline also coincided with a broader market correction across multiple assets, although specific catalysts for SOMI’s drop remain unconfirmed. The asset had previously been driven by speculative interest and algorithmic trading activity, but the recent sell-off appears to have been triggered by profit-taking and liquidity events. Analysts project that the price may find support in the $1.00–$1.30 range based on historical patterns, though uncertainty remains high due to the asset’s volatility.

Backtest Hypothesis

A hypothetical backtesting strategy was reviewed, focusing on technical indicators to evaluate potential entry and exit points for SOMI. The strategy uses a combination of RSI, MACD, and a 50-period moving average to generate trading signals. According to the hypothesis, long positions would be initiated when the price crosses above the moving average and is supported by bullish divergence in the RSI. Conversely, short positions are triggered when the RSI indicates overbought conditions and the MACD shows bearish crossover.

The strategy was designed to assess whether these indicators could have predicted the recent drop. Preliminary modeling suggests that a short signal could have been generated prior to the 426.16% decline, aligning with the divergence seen in the RSI and MACD. However, the model does not account for external factors such as liquidity shifts or broader market sentiment, which may have played a role in the asset's recent performance.