USDTCOP -928.77% in 1 Year Amid Sharp Price Corrections

On SEP 8 2025, USDTCOP dropped by 66.28% within 24 hours to reach $3876, marking the latest in a series of steep declines. The asset has seen a 247.75% decrease over the past seven days and a 310.79% drop over the last month. Over the past year, the decline has been particularly severe, with the price falling by 928.77%. These movements reflect a broader pattern of instability in the USDTCOP market, signaling a period of heightened volatility and risk aversion among participants.

Technical indicators show a strong bearish bias, with momentum failing to generate any meaningful upward thrust in recent weeks. The Relative Strength Index (RSI) has remained in oversold territory for extended periods, suggesting that the downward trajectory may continue unless there is a significant shift in sentiment or underlying fundamentals. Intraday traders have noted that short-term support levels have repeatedly failed to hold, allowing further price erosion. A break below key psychological thresholds could trigger further losses as algorithmic trading systems and automated stop-loss orders react to the continued sell-off.

The market appears to be operating under a bearish trend, with no signs of a reversal. Analysts project that the current trajectory may persist until additional data emerges that alters the risk-reward profile. The absence of any positive catalysts—such as regulatory developments or macroeconomic shifts—has left the market with few reasons to stabilize or rebound.

Backtest Hypothesis

In testing potential trading strategies in the current USDTCOP environment, a hypothesis has been developed based on the asset’s recent behavior and technical profile. The strategy involves entering short positions at key resistance levels following a confirmed breakdown in the RSI and a close below critical support thresholds. Stop-loss orders are placed just above the nearest resistance, while profit targets are set based on historical volatility and trend channel measurements. The goal is to capture sustained downward momentum while minimizing exposure during potential bounce-backs. This approach is aligned with the observed bearish trend and is intended to exploit the continued sell-off seen in the last 24 hours and across the broader time horizons.