OPEN drops by 885.96% within 24 hours as price volatility surges

On September 22, 2025, OPEN experienced an 885.96% plunge in just one day, falling to $0.8894 and showcasing extreme price volatility. Yet, despite this steep drop, the token managed to rally 292.03% over the prior week, highlighting the market’s heightened sensitivity to both news and technical signals. However, zooming out to the last month and year, OPEN has seen a consistent negative trend, losing 3836.83% over both periods.

Technical analysis points to continued downward pressure. There is a significant gap between the 50-day and 200-day moving averages, which signals a bearish market. Additionally, the Relative Strength Index (RSI) has dipped into oversold levels, possibly indicating the downward trend may be running out of steam. Market participants are watching for either a reversal pattern or a strong move above the 200-day SMA, as these could point to a possible short-term recovery.

The recent volatility appears closely linked to specific on-chain events related to news of OPEN. Updates reveal that the project has introduced changes to its governance and tokenomics, generating unease among holders. These modifications include revised emission rates and new voting processes for significant proposals. Although such developments are fairly typical for blockchain projects in transition, their timing aligned with the sharp price decline, prompting many to reduce risk amid rising uncertainty.

Backtest Hypothesis

A suggested backtesting approach seeks to replicate the latest price swings by utilizing a combination of moving averages and RSI benchmarks. The plan involves taking long positions once the price surpasses the 50-day moving average and the RSI climbs above 50, indicating a possible bullish shift. In contrast, positions are closed or shorted if the RSI drops below 30 and the price falls under the 50-day SMA. This method is designed to capture quick market turnarounds in an unstable environment. Early models indicate that this strategy might have benefited from the recent 292.03% weekly recovery but would also have faced the risk of the 885.96% daily collapse, underscoring the approach’s high-risk profile.