PLUME has plummeted by 138.95% within 24 hours, experiencing intense price swings following a network upgrade and governance adjustments.

On September 22, 2025,

After a round of network updates and adjustments to governance, PLUME has undergone a significant pullback in the last day, dropping close to 139%. Earlier, the asset saw a rapid climb of more than 3,400% within a month, fueled by heightened development activity and a boost in token use cases. Despite expectations for the new upgrades—including a hard fork to improve smart contract performance—the changes failed to deliver the anticipated improvements in short-term liquidity and transaction throughput, resulting in uncertainty and heavy selling pressure among investors.

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From a technical standpoint, indicators point to the decline as part of a broader corrective trend. PLUME has slipped beneath important support levels that previously held through last month’s surge. A bearish signal in the RSI now suggests that bullish momentum may be waning. Additionally, the price action has caused a retest of the 50-day moving average, which has turned into resistance and supports the idea that the earlier rally is now consolidating.

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Following the price drop, new governance proposals have been put forward aiming to redistribute token supply and establish more transparent staking protocols. These initiatives seek to manage inflation and better align incentives with the ecosystem’s growth. While these proposals are still being voted on, initial responses from major participants are mixed—some are hopeful, while others are wary of potential liquidity risks.

Backtest Hypothesis

The recent high volatility of PLUME has encouraged traders to test backtesting strategies to limit losses during steep corrections. One approach utilizes a dynamic stop-loss tied to a 20-day trailing volatility band, aiming to capture gains during strong trends while reducing exposure if a reversal occurs. The strategy also includes a mean reversion element, entering long positions after a 15% drop from a 50-day peak and exiting at the 20-day moving average. This method would have benefited from the previous rally and exited ahead of the recent 24-hour plunge, helping to preserve capital during the decline.

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