SOMI experiences a 72.9% drop in a single day due to significant correction during ongoing high volatility

On September 18, 2025, SOMI experienced a 24-hour plunge of 37.34%, bringing its value down to $1.2652. Over the previous week, SOMI tumbled 817.16%, yet it soared by 15,510.58% over both the last month and the last year.

This steep one-day loss comes after a week marked by a broader sell-off, during which the asset posted an 817.16% decrease. Despite this correction, SOMI's longer-term gains have been substantial, with the price surging over 15,500% throughout the past month and year. The latest daily drop has sparked debates about whether the uptrend can be maintained and showcased the asset's vulnerability to swift downturns. Market participants are now weighing if this retracement is merely a short-lived adjustment or signals a larger change in sentiment.

Technical analysis currently presents conflicting data. The RSI has fallen below 30, indicating potential oversold conditions, while the MACD has reversed into negative territory following a stretch of positive momentum. These metrics may suggest the decline is approaching a short-term bottom, though they fall short of confirming a trend reversal. The 50-day moving average remains above the 200-day moving average, maintaining a bullish configuration and implying the overall upward trend is still present.

Backtest Hypothesis

The outlined backtesting method seeks to assess a trend-following system that generates a sell signal when the RSI dips under 30 and the MACD shifts negative. This approach aims to catch brief corrections while staying true to the general bullish movement, as defined by the relationship between the 50-day and 200-day moving averages. The model also incorporates a stop-loss feature to cap potential losses if prices fall past a set limit. This strategy is designed to explore whether systematic exits during overbought episodes can help safeguard capital in volatile markets, all while keeping a positive long-term outlook.