DOLO surges by 34.91% within 24 hours as it experiences a strong bounce during a rapid short-term recovery

On September 19, 2025,

climbed 34.91% in 24 hours, reaching $6.338. Although this sharp increase stands out, the asset's performance over longer periods remains negative: it has fallen 1603.82% in the past week, 5295.34% over the last month, and 3006.75% in a year. The swift rise indicates a brief shift in investor sentiment, coming after technical analysis highlighted oversold conditions.

Recent price activity has prompted further technical analysis. Experts point out that DOLO’s sharp 24-hour gain is likely a technical rebound after excessive selling, as shown by divergences in major indicators. Patterns from the last week reflect a likely short-term bounce, with momentum data suggesting this move may only be a brief correction within an ongoing downward trend. Despite the notable daily gain of 34.91%, the overall picture still shows a long-term decline in the asset’s value.

Technical signals currently show limits to the recent price rally. Analysis of the RSI and MACD reveals that the recent jump has not resulted in strong upward momentum. The RSI remains below overbought levels, and the MACD histogram continues to show negative values. These indicators point to price exhaustion rather than a true reversal. Given the ongoing high volatility and rapid price swings, traders are urged to remain cautious.

The brief nature of the recent surge has led analysts to examine the structure of DOLO’s 24-hour move. While this rally has brought attention to the asset, it hasn’t changed the prevailing market view. Without a convincing breakout above resistance, analysts believe the current upswing may quickly fade. The main focus is now on how the market will handle the expected pullback, given the elevated volatility seen lately.

Backtest Hypothesis

The tested approach aims to take advantage of sharp rebounds in oversold markets, much like DOLO’s recent 24-hour spike. The underlying assumption is that within a prolonged bearish trend, short-lived rallies—especially those over 30%—can be used strategically with disciplined trade entries and exits. The backtest uses a long position when the asset closes above a set oversold level, combined with a trailing stop loss and a take-profit target set by Fibonacci retracement. The goal is to capture short-term momentum while minimizing downside risk, seeing these rebounds as chances for tactical trades rather than long-term directional bets.