TREE - -18.44% in 24 Hours Amid Volatile Market Conditions

On SEP 11 2025, TREE dropped by 18.44% within 24 hours to reach $0.3257. The asset has experienced dramatic swings in recent timeframes, rising by 96.36% in the preceding week, but falling by 289.99% over the last month and plummeting by 3418.44% over the past year. The sharp 24-hour decline has drawn attention as market participants assess the factors contributing to the sudden downward movement.

Technical indicators suggest mixed signals for traders. Over the past week, TREE has shown signs of short-term strength with a robust percentage gain, but recent price action has reversed this trend rapidly. Analysts project that market sentiment remains fragile, and traders are reacting to potential overvaluation concerns. The asset has not shown signs of stabilizing, with the 7-day upward momentum not being sustained into the following week.

The 24-hour decline appears to be the result of a combination of factors, including algorithmic trading behavior and investor profit-taking following a recent bounce. Market participants are closely watching whether this drop is a correction within a broader trend or a new bearish phase. Despite the recent surge in the past week, the long-term bearish trajectory remains intact, with a year-over-year drop far exceeding that of most assets in the space.

The market is currently dominated by sell-side pressure, with a significant portion of traders liquidating positions following the sharp correction. Analysts project that key support levels will be tested in the coming days, with traders closely watching for signs of a potential reversal or continuation of the downward trend. At this stage, the asset remains in a bearish phase, and any near-term recovery is expected to be short-lived unless paired with a significant fundamental catalyst.

Backtest Hypothesis

Given the volatile price behavior and mixed technical signals, a backtesting strategy has been proposed to evaluate potential performance under historical conditions. The hypothesis is based on technical indicators including moving averages and RSI levels to identify entry and exit points during both bullish and bearish market phases. The strategy involves a dynamic approach, where long positions are entered following confirmation of a bullish crossover and RSI divergence, while short positions are triggered by bearish divergence and a breakdown below key support levels. The goal is to assess whether this method could have captured the recent 96.36% gain in the week prior, while also mitigating the recent 18.44% drop through timely exits.