SOMI Plunged by 426.16% Over 24 Hours During Turbulent Market Movements

On September 14, 2025, SOMI underwent a steep decline of 426.16% in just one day, ending at a price of $1.2897. This rapid loss came on the heels of impressive gains: the asset had jumped 1382.43% over the previous week, and soared 16596.83% throughout the past month and year. The abrupt reversal has captured the interest of both traders and market analysts, emphasizing the asset's highly volatile behavior.

Despite SOMI’s overall strong upward trajectory, its latest actions indicate a possible momentum shift. Technical tools, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), showed early signs of weakness and bearish divergence earlier in the week, suggesting a likely correction. Specifically, the RSI, which had previously pointed to overbought conditions, dropped below 30 just before the steep fall, signaling a change in trader sentiment. Likewise, the MACD line fell below the signal line, further supporting the bearish scenario.

This recent price drop occurred alongside a general correction affecting various markets, though the exact reasons for SOMI’s sharp fall remain unidentified. Earlier, the asset's surge was largely attributed to speculative trading and algorithmic strategies, but the latest decline seems to have resulted from profit-taking and liquidity issues. Analysts believe the price might stabilize between $1.00 and $1.30, based on historical trends, but the high volatility continues to pose significant uncertainty.

Backtest Hypothesis

A theoretical backtest strategy was examined, utilizing technical analysis to determine optimal entry and exit points for SOMI trades. This approach incorporated RSI, MACD, and a 50-period moving average to create trading signals. According to this scenario, buy signals would occur when the price breaks above the moving average and bullish divergence is observed in the RSI. In contrast, sell signals would be activated when the RSI enters overbought territory and the MACD experiences a bearish crossover.

The objective of this strategy was to see if these indicators could have anticipated the recent dramatic decline. Early model results indicate that a sell signal might have been generated prior to the 426.16% drop, consistent with the bearish patterns in both RSI and MACD. Nevertheless, this model does not incorporate outside influences like shifts in liquidity or broader market movements, which may also have impacted SOMI's latest price action.