TREE +12.59% in 24 Hours Amid Short-Term Volatility

On SEP 12 2025, TREE rose by 12.59% within 24 hours to reach $0.3177. The token, which has experienced significant volatility in the short term, saw a 763.87% decline over the past seven days, 498.95% over a month, and a staggering 3554.93% drop over the last year.

A recent update from the development team behind TREE outlined a new protocol upgrade designed to enhance on-chain governance and transaction efficiency. The upgrade, tentatively named "Phase 2.0," is expected to introduce a more decentralized voting mechanism and reduce latency in smart contract execution. While no specific deployment date was given, the roadmap suggests implementation could begin in late Q4 2025. Analysts project that if the upgrade is well received by the community, it could potentially stabilize price expectations and attract institutional-grade interest.

The technical landscape for TREE remains challenging, with bearish momentum dominating across multiple timeframes. The Relative Strength Index (RSI) currently sits in oversold territory, signaling potential for a short-term bounce. However, the asset remains far below its 50-day and 200-day moving averages, reinforcing a long-term bearish trend. A break above the $0.35 resistance level could trigger renewed interest among technical traders, but broader adoption remains unlikely without a fundamental shift in use cases or utility.

The market’s reaction to the news has been mixed, with retail investors showing cautious optimism while larger holders appear to be maintaining a long-term bearish stance. Despite the sharp 24-hour increase, the broader context of TREE’s performance over the past month and year continues to pressure sentiment. The development team’s communication has been consistent, though the absence of immediate price action following the announcement indicates the market may be treating the news as a delayed response rather than a catalyst for rapid movement.

Backtest Hypothesis

A proposed backtesting strategy suggests that a momentum-based approach focusing on RSI divergence and moving average crossovers could have captured some of the short-term upside seen in the recent 24-hour rally. The strategy involves entering long positions when RSI bottoms in oversold territory and the 50-day moving average crosses above the 200-day line—a bullish crossover often used in technical analysis. A short position is triggered when RSI tops in overbought conditions and the 50-day moving average crosses below the 200-day line.

Given TREE’s recent volatility, the backtest would evaluate whether a disciplined, rules-based system could have mitigated downside risk during the 7-day and monthly declines. The test would also assess the frequency of false signals and how the strategy performs under a variety of market conditions, including sharp sell-offs and sudden rallies like the one observed on SEP 12.