STRAX -165.39% Amid Sharp Market Correction

STRAX experienced an extreme price correction on SEP 6 2025, dropping 65.39% within the last 24 hours to trade at $0.04278. Over the past seven days, the token fell by 70.03%, marking one of the most severe short-term declines in recent memory. The one-month drawdown stands at 247.59%, while the one-year decline has reached a staggering 4303.7%. The rapid deterioration in value has raised concerns among investors, with technical indicators confirming a deep bearish trend.

The decline appears to be part of a broader technical breakdown. STRAX has fallen below key support levels and failed to respond to potential buying interest. On the 7-day RSI chart, the token has remained in oversold territory for several sessions, suggesting limited short-term reversal potential. The MACD has also turned sharply negative, reinforcing the bearish momentum. Analysts project that additional downward movement is likely in the absence of a strong reversal signal.

The price has moved well below its 50-day and 200-day moving averages, with a significant gap opening between the two. This divergence suggests prolonged bearish pressure and weak institutional or retail participation. On-chain data indicates a drop in active addresses and transaction volume, which typically correlates with waning interest and liquidity. The market is awaiting a potential catalyst that might reverse the trend, but so far, none has emerged.

Backtest Hypothesis

A backtesting strategy has been proposed to evaluate potential trading signals in STRAX. The strategy is based on the convergence of RSI and MACD indicators, specifically designed to identify low-probability reversal points in a bearish trend. The model enters long positions only when RSI moves above 20 and MACD crosses above the signal line, with a stop-loss set below the most recent swing low. The time frame for the strategy is set at 7 days, with exit criteria based on either reaching a 20% return or hitting the stop-loss level. The hypothesis is that while STRAX remains in a long-term bear, short-term bounces could offer strategic entry points for aggressive traders. However, given the current market structure and liquidity conditions, execution risk remains elevated.