XTZ Drops 8.27% in 24 Hours Amid Market Downturn

On November 3, 2025, XTZ experienced a significant decline of 8.27% within 24 hours, settling at $0.5341. The cryptocurrency also dropped by 9.75% over the past seven days, 8.32% in one month, and 58.62% over the past year. These declines reflect a broader bearish trend that has persisted for several months, with no immediate signs of reversal in the short term.

Market participants have noted that XTZ has been under pressure due to a combination of factors, including broader market sentiment and reduced speculative activity. Unlike previous periods, the market has shifted toward risk-off behavior, with investors favoring more stable assets. This trend has particularly impacted altcoins, with XTZ being one of the most affected due to its volatility and lower market cap relative to Bitcoin and Ethereum.

The technical chart for XTZ shows a breakdown below key support levels. Analysts have observed that the 50-day and 200-day moving averages are both declining, reinforcing the bearish outlook. The Relative Strength Index (RSI) currently sits in oversold territory, suggesting that the asset might be overbought on the downside. However, given the prolonged decline, it may take longer for a reversal to occur.

Several technical indicators have been used in recent analysis to assess potential entry and exit points for XTZ. Among these, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, with the signal line crossing below the MACD line. This suggests continued downward momentum, though traders remain cautious about the potential for a short-term bounce.

Backtest Hypothesis

To evaluate the effectiveness of a potential trading strategy in response to XTZ’s recent performance, a backtest can be conducted using the following parameters:

1. Event Definition: A 10% decline in price within a single trading day.
2. Entry Rule: Open a long position at the close of the event day.
3. Exit Rule: Exit the position when the price recovers to a 10% gain from the entry point or when a maximum of 15 trading days have passed, whichever occurs first.
4. Stop-Loss: A 15% loss from the entry price to limit downside risk.
5. Benchmark Period: From January 1, 2022, to November 2, 2025.

This strategy aims to capture potential rebounds following sharp price declines, leveraging volatility to identify buying opportunities in a bear market. The backtest would analyze how often XTZ has experienced such declines and whether subsequent rebounds have been sufficient to yield a profit under the defined rules. It would also assess the frequency of stop-loss triggers and the overall win rate of trades executed under this hypothesis.