TOWNS has dropped by 3956.52% over the past year as technical indicators remain highly unstable
As of SEP 25 2025,
Technical analysis of TOWNS over the last year reveals a marked decline, with momentum indicators and trend lines pointing to sustained downward pressure. The Relative Strength Index (RSI) remained in oversold conditions for extended stretches, reflecting persistent lack of buying despite brief recoveries. The Moving Average Convergence Divergence (MACD) did not produce any bullish crossovers, and the price consistently stayed beneath all major moving averages. Collectively, these technical signals indicate a deepening bearish trend with no signs of an imminent turnaround.
In recent weeks, TOWNS has failed to maintain any support levels, with each attempted recovery quickly met by heavier selling. The 200-day moving average, often regarded as a key psychological marker, has been broken several times without evidence of institutional accumulation. On-chain metrics also show a decline in both active addresses and transaction activity, underscoring the asset’s diminishing role in the wider market. Analysts suggest that unless significant positive catalysts emerge, the downward momentum is expected to continue.
Backtest Hypothesis
The backtesting methodology for TOWNS utilizes a blend of trend-following and volatility-based tools. The primary framework employs a dual moving average crossover, using a 10-day short-term and a 50-day long-term average. A sell signal is issued when the short-term average drops below the long-term, while a buy signal occurs when it crosses back above. The system also integrates an Average True Range (ATR) filter to minimize false signals during periods of heightened volatility.
This approach is retrospectively applied to the past year to assess its performance during TOWNS’s decline. The evaluation focuses on risk-adjusted returns, drawdown levels, and the reliability of generated signals. Given the persistent downtrend, the expectation is that the strategy would have struggled to produce meaningful gains and may have amplified losses by reacting to false recoveries. The test is designed to determine whether a strictly technical strategy is effective in a market suffering from fundamental weakness rather than typical cyclical swings.
