TREE up 12.59% over the past 24 hours as short-term fluctuations persist

On September 12, 2025, TREE experienced a 12.59% surge over a 24-hour period, reaching a value of $0.3177. Despite this short-term spike, the token has faced notable turbulence, plunging 763.87% in the past week, dropping 498.95% in a month, and suffering a dramatic 3554.93% decrease over the past year.

The TREE development team recently announced a protocol update aimed at improving on-chain governance and streamlining transaction processes. This update, provisionally called "Phase 2.0," intends to implement a more decentralized voting framework and decrease smart contract execution delays. Although a specific launch date wasn't provided, the roadmap indicates rollout may start in late Q4 2025. Experts believe that if the upgrade is welcomed by users, it could help stabilize price expectations and potentially draw interest from institutional investors.

TREE’s technical indicators still point to a challenging outlook, with bearish signals apparent across several timeframes. The Relative Strength Index (RSI) is now in oversold territory, which could suggest a chance for a short-term rebound. Nevertheless, the token is trading well below both its 50-day and 200-day moving averages, maintaining a strongly bearish long-term pattern. Should the price break above the $0.35 resistance point, this may renew attention from technical traders, but widespread adoption will likely remain limited unless there is a significant improvement in utility or real-world applications.

Market participants have responded to the update with mixed emotions; retail traders are cautiously optimistic, whereas larger investors continue to exhibit a bearish, long-term view. Even with the recent sharp 24-hour rise, TREE’s overall performance over the last month and year continues to dampen sentiment. While the development team has communicated consistently, the lack of immediate price movement after the news suggests that the market may be processing the announcement as having a delayed rather than immediate impact.

Backtest Hypothesis

A suggested backtesting approach indicates that a momentum-based strategy focusing on RSI divergence and moving average crossovers might have capitalized on the recent 24-hour upswing. This method calls for initiating long positions when the RSI reaches oversold levels and the 50-day moving average climbs above the 200-day line—a bullish crossover widely referenced in technical analysis. Conversely, a short position is entered when the RSI signals overbought conditions and the 50-day moving average drops below the 200-day average.

Considering TREE’s recent price swings, the backtest aims to determine whether a disciplined, rule-based approach could have lessened downside exposure during the recent weekly and monthly declines. It would also review how often false signals occur and how the strategy performs under various market scenarios, such as sharp declines and sudden rallies like the one on September 12.