SOMI Sees 13.74% Drop in Short-Term Volatility During Technical Downturn

On September 19, 2025,

experienced a sharp decline of 13.74% during the day, dropping to $1.2098 after plummeting 517.35% over the last 24 hours. This steep fall comes on the heels of continued market turbulence, leaving the token down 212.11% for the week, although it had soared 14,686.74% over both the past month and year. The abrupt downturn signals increasing market uncertainty as traders adjust their holdings based on technical signals and shifting market sentiment.

This latest decline represents a notable change for SOMI, which had previously staged a strong rebound. Market experts believe the token could be entering a phase of consolidation following the recent heavy selloff that wiped out several months of progress. The drop seems to be largely influenced by negative readings from main technical tools like the RSI and MACD, both of which have turned bearish in recent trading sessions.

Technical analysis points to SOMI falling below key support thresholds, with the 200-day moving average now serving as a crucial benchmark. Investors are watching closely to see if SOMI can revisit this level without incurring further losses. If prices remain under $1.20, it may spark even more selling and could lead to a wider market correction. Still, considering the previously high volatility, many analysts view this move as a temporary correction rather than a fundamental shift in direction.

Backtest Hypothesis

A suggested backtesting method for SOMI involves using a blend of RSI signals and moving average crossovers to spot possible turning points. The strategy calls for entering long trades when the RSI falls below 30 and the 50-day moving average crosses upward past the 200-day line—a setup often linked to oversold markets and bullish trends. Risk is managed with predetermined stop-loss and take-profit targets to protect gains. Applied to the recent price movements, this approach would have issued a sell alert at the onset of the downturn, indicating that the indicators were accurate in forecasting the drop.