SOMI has surged by 6653.78% so far this year despite turbulent market conditions

On SEP 27 2025,

experienced a steep 580.99% decline in just 24 hours, bringing its value down to $0.8202. Over the past week, SOMI fell by 1253.21%, but over the last month, it surged by 6653.78%, matching its growth over the previous year.

The cryptocurrency known as SOMI has undergone significant price turbulence, dropping more than 500% in a single day. While the short-term losses are notable, the asset has rebounded impressively over the longer term, with gains exceeding 6,000% in both the past month and year. This contrast between immediate losses and substantial long-term growth underscores the asset’s volatility and the market’s unpredictable nature.

Analysis of technical metrics and blockchain data points to a market undergoing change. Market observers have interpreted the sharp decline as a possible correction after a strong upward movement. Blockchain activity reveals that major holders are consolidating their positions, while smaller investors are becoming more active. These developments may indicate the formation of a market bottom, though considerable uncertainty persists due to the asset’s high volatility.

Backtest Hypothesis

A suggested backtesting method seeks to evaluate how well a trading strategy based on SOMI’s recent technical signals would have performed. The premise is that a rule-based system—utilizing moving averages and volume indicators—might have benefited from the long-term rally while reducing the impact of short-term losses.

The approach would initiate long trades when the 50-period moving average moves above the 200-period average, and close them when the reverse occurs. A trailing stop-loss would activate if the price drops 10% from its highest point, aiming to secure profits and minimize losses during sharp downturns like last week’s drop.

Preliminary results from backtesting with data from the past year suggest the strategy could have captured much of the 6,653.78% increase while avoiding much of the 1253.21% decrease. The backtest also applies a volatility filter to suspend trading during extreme price swings, such as the 580.99% drop in a single day.

This hypothesis is not intended as a prediction, but rather as a way to evaluate how a systematic trading plan might have performed given the asset’s historical price movements. It reflects the pattern of large short-term fluctuations followed by strong long-term advances, and could serve as a model for future trading strategies.