USDE -4.00% in 24 Hours Amid Market Uncertainty

On OCT 7 2025, USDE dropped by 4% within 24 hours to reach $1. The asset has continued to experience downward pressure in the broader market, with a cumulative drop of 15.97% over the past seven days, 11.99% over the last month, and 8.99% over the previous year. The decline underscores a broader loss of confidence in the asset among investors and highlights the challenges faced by stablecoins in maintaining pegs amid macroeconomic uncertainty.

The recent volatility is being attributed to a combination of factors, including rising interest rates, shifting capital flows, and increased scrutiny from global regulators. Analysts note that the broader market environment, particularly in the stablecoin sector, has been underpinned by regulatory risk and concerns over liquidity. As market participants recalibrate their positions, USDE has found itself caught in the crossfire of a broader trend affecting the entire asset class.

Technical analysis of USDE’s chart reveals a breakdown from a key support level, signaling a shift in momentum to the bearish side. The Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions, though this does not necessarily imply an immediate reversal. The Moving Average Convergence Divergence (MACD) has also turned negative and shows no sign of forming a bullish crossover in the near term. These indicators suggest that the asset is in a phase of consolidation after a sharp decline, with no clear short-term catalysts for a rebound.

Backtest Hypothesis

Given the recent price movement and the prevailing technical indicators, a backtesting strategy could be formulated based on a mean-reversion approach. The strategy would involve entering long positions when USDE’s price falls below its 20-day moving average, with a stop-loss set at the next significant support level. Exit triggers would be based on a combination of RSI reaching oversold conditions and a positive crossover in the MACD. This setup is designed to capitalize on short-term volatility while mitigating risk through well-defined risk management rules. The effectiveness of this approach would depend on the stability of the underlying asset’s peg and the broader market dynamics.