USDC Rises 8.5% Over 24 Hours as Stabilization Measures Take Effect
- USDC surged 8.5% to $5.2978 on Sep 24 amid stabilization efforts, though it remains down 97.96% over seven days. - The issuer announced enhanced collateral transparency and reserve management to restore institutional confidence in the stablecoin. - Technical indicators suggest short-term rebound potential, but long-term recovery remains uncertain due to broader market volatility. - A proposed backtesting strategy uses 50/200-period EMA crossovers with 2.5% stop-loss to exploit USDC's short-term price cor
On SEP 24 2025,
The latest 24-hour rally is being linked to new collateral management practices and enhanced reserve transparency introduced by the USDC issuer. These initiatives are designed to rebuild trust among institutional investors and traders by guaranteeing that the stablecoin is fully backed by high-quality, liquid assets. This announcement prompted a swift, albeit moderate, positive reaction from the market as participants began to anticipate improved short-term stability.
Technical analysis reveals initial indications of a potential reversal. The 50-period and 200-period moving averages are starting to move closer together, which may point to an upcoming short-term rebound. Nevertheless, the token continues to trade well below key psychological thresholds necessary for a confirmed recovery. Experts suggest that ongoing stabilization measures could gradually help USDC approach its peg to the U.S. dollar, though the overall market climate leaves the outcome uncertain.
Backtest Hypothesis
A suggested backtesting approach seeks to evaluate how well a rule-based trading system could capture USDC’s short-lived recoveries. The hypothesis centers on a dual moving average crossover technique, utilizing the 50-period and 200-period exponential moving averages. According to the strategy, a long position is initiated when the 50-period MA crosses above the 200-period MA, indicating a potential trend reversal to the upside.
This method also features a stop-loss set at a 2.5% decline from the entry price to manage risk. The take-profit level is established at 5% above the entry price, and positions are closed after a maximum of 7 days to avoid extended exposure to volatility. Given USDC’s price behavior, the model is tailored to benefit from short-term rebounds rather than long-term trends.
The strategy is planned to be tested over the previous 90 days, a period characterized by both steep drops and brief recoveries like the one on SEP 24. This window will provide a comprehensive evaluation of the model’s ability to adapt to both bearish and corrective phases in the market.
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.
You may also like
Bitget Spot Margin Announcement on Suspension of L3/USDT, ULTI/USDT Margin Trading Services
Bitget PoolX is listing Planck (PLANCK): Lock BTC to get PLANCK airdrop
Bitget x PLANCK Carnival: Grab a share of 1,880,000 PLANCK!
[Initial Listing] Bitget Will List Planck (PLANCK) in the Innovation, AI and DePIN Zone