PLUME sees a -49.69% decline in the short term as a result of unstable market dynamics

On September 20, 2025,

experienced a 52.99% drop in just 24 hours, landing at $4.707. Over the past week, PLUME declined by 741.76%, while it surged 4148.33% in the last month and climbed 2504.66% over the previous year.

After this steep one-day loss, PLUME has come under fresh examination as market participants and experts reconsider the durability of its recent uptrend and its short-term prospects. This pullback has been largely credited to traders taking profits after a rapid surge, combined with general corrections in the broader crypto market that have affected fast-growing digital assets. Despite strong momentum throughout the past month, this abrupt downturn has prompted many to reassess their risk exposure.

From a technical perspective, indicators present a mixed outlook. The RSI, which had hovered around overbought territory during the rally, has now eased into more neutral levels following the decline. Both the 50-day and 200-day moving averages continue to indicate a bullish trend, pointing to underlying long-term resilience. Experts anticipate that PLUME may enter a period of consolidation before potentially continuing its upward movement, but emphasize that short-term price swings remain a significant risk factor.

Backtest Hypothesis

One suggested backtesting method involves initiating long trades on PLUME when its 20-day moving average moves above the 50-day average, with a stop-loss set just below the 20-day line to help manage risk. Positions are closed out either when the RSI goes above 70—indicating overbought conditions—or if the 20-day average falls below the 50-day line. This hypothesis attempts to take advantage of the asset’s medium-term upward momentum, while minimizing losses during periods when the price becomes overextended.

This approach is constructed to reflect the asset’s historical trend, with moving average crossovers often serving as reliable predictors of price direction. By adding the RSI as a trigger for exiting positions, the strategy aims to avoid holding through sharp corrections that typically follow strong rallies. Such a method is especially applicable to PLUME’s recent performance, which has been marked by significant volatility.