C -3953.8% YTD Following Significant Drops in Both Short and Long Terms
- C plummeted 513.65% in 24 hours to $9.354, marking a severe short-term correction amid a 3953.8% annual decline. - The asset's prolonged bearish trend triggered stop-loss orders and liquidations, eroding investor confidence despite stabilization attempts. - Analysts warn of structural challenges if fundamentals remain unchanged, with technical indicators showing no reversal patterns. - A backtesting strategy using 20-day SMA and 5% stop-loss thresholds aims to mitigate losses during sharp declines.
On September 11, 2025, C experienced a sharp decrease of 513.65% in value over a single day, dropping to $9.354. This dramatic move signaled a steep, short-term correction. Over the previous week, the asset declined by 384.81%, and over the past month, it was down 282.83%, highlighting a persistent downward momentum. Looking at a broader timeframe, C’s value fell by a total of 3953.8% over the past year, making it one of the largest drops in the market.
This sustained drop has been accompanied by a clear erosion of investor trust, as the asset has struggled to rebound despite efforts to steady its price. Experts believe the ongoing decline could signal deeper, underlying problems, especially if there are no improvements in the asset’s key fundamentals. The rapid price fall has activated stop-loss triggers and forced liquidations, further intensifying the downward trend.
Given the extended bearish phase, market participants have typically relied on technical analysis to identify possible reversal points or the continuation of the downtrend. The latest figures indicate that the bearish sentiment remains strong, with support levels frequently being challenged and no clear signals of a turnaround yet.
Backtest Hypothesis
To analyze how a systematic trading method might have performed during C's decline, a backtesting approach was suggested. This method sets a fixed stop-loss at 5% below the 20-day moving average and issues a buy signal whenever the closing price surpasses the 20-day SMA following a 15% drop. The premise is that this strategy could have lessened some of the steep losses and captured brief recovery rallies.
The approach also uses a trailing stop set at 2.5% to secure profits and reduce risk during volatile movements. Performance is evaluated with a simulated $100,000 portfolio, rebalanced every 15 trading sessions to reflect changes in the market landscape.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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