0G experienced a 6397.18% decrease over the past year during the market slump
On October 16, 2025,
0G’s latest market activity has caught attention due to the extraordinary speed of its decline. The 120.28% plunge in a single day is the largest since the asset was first listed, pointing to possible severe liquidity or underlying structural problems. Experts believe the prevailing sentiment remains negative, though no specific regulatory or technological causes have been identified.
The ongoing downward movement of 0G is further emphasized by its longer-term performance. A monthly drop of 3161.87% underscores the intensity of the decline, far surpassing normal market corrections. The 6397.18% decrease over the past year suggests a fundamental shift in the asset’s outlook, rather than a short-term anomaly. Investors are now considering whether this pattern signals a deeper, ongoing structural issue or simply a temporary market overreaction.
Technical analysis indicates that 0G has been entrenched in a bearish trend for several months, with no clear signs of recovery. Short-term indicators remain heavily oversold, which could either precede a bounce or signal further losses. The low trading volume and lack of volatility point to minimal market engagement, potentially intensifying price movements. Experts warn that unless there is a significant change in fundamentals, additional declines may occur.
Backtest Hypothesis
To gain insight into what might happen after a 10% drop in a similar asset, a backtesting approach can be used. This method identifies a “down 10%” event, defined either by a close-to-close drop (today’s closing price is at or below 90% of yesterday’s close) or an intraday fall (the price falls 10% or more from the previous close at any point during the day). Running this test requires specifying a stock ticker. If there are several tickers, the analysis can be performed for each one. Alternatively, if no particular asset is chosen, a broad-market benchmark such as SPY can be used. The backtest will analyze the period from January 1, 2022, to October 16, 2025, to provide historical context on market reactions to such events.
