LINKJPY plunges 429.82% within a month as technical conditions worsen significantly

On September 6, 2025, LINKJPY fell sharply by 51.67% within a single day, landing at $3280. Over the course of a week, the pair plummeted by 129.67%, suffered a 429.82% drop in one month, yet surged by 2108.77% over the past year.

This one-month decline of 429.82% has set off a wave of negative technical signals. Several crucial support levels have recently been breached, placing the price in a turbulent consolidation range near $3280, with no immediate indications of a turnaround. Experts caution that persistent weakness could drive the price even lower unless a significant bullish factor appears soon.

Currently, both the 50-day and 200-day moving averages are positioned below the price, creating a 'death cross' pattern that typically reinforces a bearish outlook among technical traders. The Relative Strength Index (RSI) is now deep in oversold territory, but historical records indicate that remaining oversold for extended periods does not guarantee a quick recovery. Taken together, these signals point to ongoing selling activity and limited buying interest, fueling further declines in value.

Backtest Hypothesis

A suggested backtesting method seeks to determine if short-term trading may be effective during phases of technical breakdown. This approach combines identification of RSI divergence with moving average cross strategies, focusing on trades entered after the price falls below the 200-day moving average. The underlying hypothesis is that this setup could help capture moves in either direction, depending on the overall market environment. The strategy includes a stop-loss at a key support level and aims for profits at the nearest resistance. The goal is to assess whether systematic trades based on these technical cues can deliver steady returns across a historical period.