0G Drops 86.91% Within 24 Hours During Significant Market Downturn
- 0G plummeted 86.91% in 24 hours to $3.655, with a 2460.24% weekly drop, marking one of the worst corrections. - The crash was driven by liquidity crunches, institutional exits, and algorithmic trading exacerbating the sell-off. - Technical indicators show 0G below key moving averages and in oversold territory, with no reversal signs. - Backtesting strategies using RSI and moving averages may struggle to profit without tighter risk controls.
On September 27, 2025,
This dramatic decline seems to have been set off by a combination of liquidity shortages and the withdrawal of institutional backing. Reports indicate that several key investors have either reduced or fully exited their holdings, triggering a chain reaction of selling. The situation was made worse as algorithmic trading systems responded to the breakdown of crucial support levels, further accelerating the sell-off. Although the project team has not released any official comments, many in the market believe the drop is partially due to waning confidence in the project's core development and governance.
From a technical standpoint, 0G has slipped beneath important moving averages, such as the 20-day and 50-day lines, signaling continued bearish momentum. The daily chart shows the asset locked in a persistent downtrend, with no immediate signs of recovery. The relative strength index (RSI) has entered oversold territory, but in previous severe bear markets, this has not led to a reversal. The breach of key Fibonacci retracement levels has further fueled negative sentiment, as traders close out short positions and intensify the selling pressure.
The Backtest Hypothesis section expands on the technical signals mentioned earlier. The suggested backtesting approach aims to pinpoint optimal entry and exit points by tracking RSI divergences and moving average crossovers. The strategy is structured to identify sell opportunities when the RSI falls below 30 and the 20-day moving average drops under the 50-day line. The hypothesis posits that combining these signals with volume confirmation could have lessened losses or even produced gains during the downturn. Nevertheless, given the magnitude of the correction, the strategy may face challenges in achieving profitability unless it incorporates stricter stop-loss rules or adaptive risk controls.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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