BFUSD drops 1.97% over 24 hours as downward trend continues

On SEP 22 2025,

fell by 2% in the past 24 hours, reaching $0.9993. Over the last week, BFUSD declined by 10%, with a 3% loss in the past month and a 3% decrease over the previous year.

BFUSD’s value has gradually weakened across several time periods, indicating persistent market uncertainty. The 24-hour slip to $0.9993 extends a longer-term downturn, following a 10% weekly slide and a 3% monthly reduction. Although intended to be a stablecoin, recent volatility in BFUSD challenges its core purpose.

Technical analysis shows BFUSD trading under important resistance points that it has tested but failed to hold. Should the price fall below the 24-hour support of $0.9990, further short-term declines could occur, based on on-chain metrics. Despite this, foundational metrics such as total supply and peg maintenance appear stable, yet the absence of a driving catalyst keeps the coin in a consolidation phase.

The modest 3% yearly decrease highlights a wider trend of waning confidence in algorithmic stablecoins. Even though BFUSD retains its 1:1 value to the U.S. dollar, its liquidity and redemption processes have raised doubts among analysts and traders. These concerns have not resulted in a significant loss of its peg but have reduced its share of the stablecoin market compared to traditional alternatives.

Recent movements show little short-term momentum, with trading activity subdued and volatility low. This quiet period may reflect that traders are waiting for clearer signals from governance updates or larger economic shifts that could affect stablecoin markets.

Backtest Hypothesis

To explore trading opportunities following BFUSD’s price behavior, a backtest strategy has been outlined. The aim is to determine if a mean-reversion approach could profit from the coin’s price swings over the past month. This strategy utilizes the RSI (Relative Strength Index) to identify when BFUSD is relatively overbought or oversold.

The simulation enters a long position when the RSI falls below 30, indicating oversold status, and exits when the RSI exceeds 70, signaling an overbought market. Stop-loss and take-profit thresholds are set 2% below and above the entry price, respectively. The test covers the 30 days leading up to SEP 22, 2025.

Initial findings indicate the approach delivered uneven returns, as multiple false positives diminished its effectiveness. This result mirrors the coin’s recent lack of clear trend, where technical signals often fail to trigger reliable trades. The analysis suggests that the strategy would benefit from additional filters or supporting indicators to enhance accuracy in a low-confidence trading environment.