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LQTY Dropped 5689.75% in 1 Year Amid Sharp Downtrend

LQTY Dropped 5689.75% in 1 Year Amid Sharp Downtrend

ainvest2025/08/29 15:19
By:CryptoPulse Alert

- LQTY plummeted 5689.75% in 1 year, with 615.2% 24-hour drop and 1962.81% monthly decline. - Analysts warn of fundamental model re-evaluation as technical indicators confirm extended bear market. - Price failed to hold key support levels, with bearish moving averages and no recovery signals. - Proposed backtesting strategy tests 10% daily drop triggers from 2022-2025 to assess recovery potential.

On AUG 29 2025, LQTY dropped by 615.2% within 24 hours to reach $0.866, LQTY dropped by 1422.27% within 7 days, dropped by 1962.81% within 1 month, and dropped by 5689.75% within 1 year.

The asset has experienced a sharp and sustained decline across multiple timeframes, with the most severe drop occurring over the last 365 days. The 24-hour drop of 615.2% highlights an acute price collapse, while the 7-day and 1-month declines further underline the depth of the bearish trend. Analysts project that such a performance would typically trigger re-evaluations of fundamental models and risk management strategies, particularly among long-term holders and institutional investors.

The recent behavior of LQTY suggests a deepening technical bear market. Price levels have not found support at key historical thresholds, and the absence of significant buying pressure implies a lack of confidence in near-term recovery. The absence of stabilizing patterns in the daily close suggests that the market is either in a liquidity crunch or experiencing a structural shift in sentiment.

Technical analysis of LQTY reveals a continuation pattern consistent with an extended downtrend. Moving averages across all major timeframes are bearish, with the 200-day moving average well below current price levels. The asset has failed to close above any prior resistance levels, suggesting a breakdown in key support structures and a lack of buyers willing to absorb the falling price. This dynamic has created a negative feedback loop where falling prices are met with further selling pressure.

Backtest Hypothesis

Given the recent sharp drop and the sustained bearish momentum, a backtesting strategy may help evaluate potential recovery scenarios. A proposed rule-based approach would look to identify and act on sharp intraday declines as possible entry points. Specifically, the trigger condition is defined as a daily close that is at least 10% lower than the previous day's close. A long position would be initiated at the next day’s open following the trigger. Exit rules could include a fixed holding period of five trading days, a recovery to the prior close, or a custom rule based on trailing stops.

This strategy would be tested over a period from January 1, 2022, to August 29, 2025, encompassing the full range of the bearish trend. Optional risk controls such as stop-loss or take-profit levels could be applied to manage exposure. The aim is to determine whether the identified sharp pullbacks can serve as reliable signals for recovery or further bearish continuation.

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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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