On September 17, 2025, LINEA experienced a sharp decline of 504.97% within a single day, dropping to $1.018. Over the past week, however, the value surged by 677.64%, and it has increased by 572.74% over both the past month and year.
LINEA, recognized for its Layer 2 blockchain scaling solution, has revealed a number of significant updates in the last month. The platform rolled out an upgraded cross-chain messaging protocol, making it possible for blockchains to communicate more efficiently. Alongside this, LINEA expanded its network through new collaborations with decentralized application (DApp) creators, broadening its ecosystem. Furthermore, the platform unveiled a governance token burn initiative aimed at decreasing token circulation and aligning stakeholder incentives for the long term.
Recent technical analysis highlights a notable reversal trend in LINEA’s price action over the previous month. After a phase of consolidation, the price broke upward, surpassing important resistance points. The Relative Strength Index (RSI) has maintained a strong positive reading over the last two weeks, signaling increasing strength. Additionally, on-chain analytics reveal that short-term selling pressure is gradually easing, reinforcing the continued upward movement.
Backtesting Hypothesis
This backtesting approach aims to leverage the momentum and breakout tendencies of LINEA as indicated by its latest technical and on-chain patterns. The method utilizes a moving average crossover strategy paired with RSI divergence to pinpoint promising entry moments. Specifically, trend direction is confirmed using 9-day and 21-day moving averages, while RSI divergence helps identify potential pullbacks for entry. Positions are closed either at a predetermined stop-loss or once a take-profit level at a previous resistance is reached. This hypothesis assumes that LINEA’s recent fundamental improvements will sustain demand, and that the observed technical signals will continue to offer predictive value in the short term.