XPL Drops 1111% in 24 Hours Amid Sharp Correction

On OCT 7 2025, XPL experienced a dramatic decline of 1111% within 24 hours, falling to $0.9313. Over the last week, the asset lost 95.38% of its value, while over the past month, it declined by 908.02%. Year-to-date, the drop stands at 2764.42%. The rapid and severe price correction has drawn attention from traders and analysts, many of whom are examining the structural and market dynamics behind the collapse.

The recent movement in XPL has triggered a strong bearish reaction in the chart patterns, with key support levels rapidly being invalidated. The price action suggests a potential continuation of the downward trajectory unless a strong and immediate reversal occurs. Analysts project further downward pressure in the near term, emphasizing the fragility of the current market structure. Technical indicators, including moving averages and momentum oscillators, have all moved sharply lower, aligning with the prolonged bearish trend.

The sharp drop in XPL has raised questions about the sustainability of prior price levels and the effectiveness of historical resistance as a guide for future movement. The RSI (Relative Strength Index) has collapsed into oversold territory, yet no significant bounce has emerged, indicating a lack of buying interest at lower price levels. The MACD (Moving Average Convergence Divergence) has also turned negative and continues to diverge from price, suggesting the downtrend remains intact.

The backtest strategy being evaluated leverages these technical indicators to model potential outcomes based on historical price behavior. The strategy is designed to identify bearish divergence between the RSI and price action, combined with a breakdown below a key moving average. These signals are used to trigger sell entries with stop-loss and take-profit levels calibrated to recent volatility metrics.