XPL -4517.34% in 1 Year Amid Regulatory and Market Pressures

On OCT 10 2025, XPL dropped by 596.37% within 24 hours to reach $0.7096, XPL dropped by 2432.46% within 7 days, dropped by 3110.67% within 1 month, and dropped by 4517.34% within 1 year.

Regulatory actions have intensified scrutiny on XPL, with several jurisdictions announcing compliance investigations into its operations. The moves come amid a broader industry-wide review of token mechanics and governance structures. The latest development is the initiation of a regulatory inquiry into XPL’s smart contract architecture, which has raised concerns among investors and token holders about potential vulnerabilities in the protocol.

Technical indicators show a prolonged bearish trend. The 50-day and 200-day moving averages have both trended downward, indicating sustained selling pressure. The Relative Strength Index (RSI) has remained below 30 for over three weeks, a sign of oversold conditions. However, traditional oversold levels have failed to trigger a reversal, suggesting continued investor pessimism.

Backtest Hypothesis

A proposed backtesting strategy focuses on leveraging technical indicators such as RSI and moving average crossovers to evaluate potential entry and exit points. The strategy employs a long-short mechanism based on RSI divergences and crossovers of the 50-day and 200-day moving averages. It is designed to identify overbought and oversold conditions while also filtering for trend strength. The aim is to evaluate whether a structured approach could have mitigated losses or captured limited upside during XPL’s extended decline.