PLUME drops by 44.15% as market faces significant corrections and increased volatility
- PLUME plummeted 44.15% in 24 hours to $4.012, following a 733.88% drop in the last 24 hours. - Analysts attribute the sharp correction to profit-taking and algorithmic selling, sparking investor reassessment of fundamentals and technical indicators. - Technical indicators show a bearish "death cross" and oversold RSI, suggesting continued downward momentum despite short-term volatility. - A backtesting strategy using moving average crossovers and RSI divergence aligns with recent bearish trends, validati
On September 25, 2025,
The speed and scale of this recent downturn are particularly striking, with PLUME losing almost three-quarters of its value in a single day. Experts point to a mix of profit-taking and algorithm-driven selling as the main causes, though no clear trigger has emerged. Despite strong gains over the past month and year, the recent volatility has raised questions about the asset’s risk and stability. Many investors are adjusting their holdings in anticipation of further market changes.
Technical analysis now reflects the broader sell-off. The 50-period moving average has dipped below the 200-period average, creating a bearish “death cross.” The RSI has fallen under 30, indicating oversold territory, while the MACD has sharply diverged from price trends. Together, these signals point to a possible continuation of the downward movement, although discrepancies between momentum and price could suggest a short-term bottom is forming.
Backtesting Approach
A suggested backtesting method examines the performance of a dual moving average crossover strategy paired with RSI divergence signals. This approach would trigger short trades when the 50-period SMA moves below the 200-period SMA and the RSI displays bearish divergence (rising prices with falling RSI). Stop-loss and take-profit points are set dynamically using the 14-day average true range (ATR). In this context, the recent price drop fits the expected pattern for bearish markets, potentially supporting the strategy’s effectiveness in volatile conditions.
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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