TOWNS experiences a 1073.83% decrease in 24 hours as the market faces a significant decline

On September 25, 2025,

saw its price plummet by 1073.83% in just one day, closing at $0.809. Over the previous week, the token dropped by 2678.9%, and its value decreased by 2114.62% over the past month. Since the start of the year, TOWNS has suffered a staggering 4217.39% loss. These figures point to a pronounced bearish trend across all major timeframes, suggesting either a significant decline in investor confidence or a fundamental change in the market environment for this asset.

The sharp decline in TOWNS has highlighted concerns about the token’s liquidity and underlying stability, as such steep and rapid losses often indicate weak support from both trading activity and long-term holders. Market analysts warn that unless a positive catalyst emerges—such as new project developments, governance reforms, or a strategic shift in the token’s core direction—further price swings are likely.

Short-term technical analysis places TOWNS in oversold territory, but the broader outlook remains strongly negative. The token has been unable to hold any significant support levels, and its failure to stabilize or recover suggests that market trust has eroded. Notably, TOWNS has yet to show any indication of reversing its downward momentum, even as it approaches record-low valuations.

Indicators like RSI, MACD, and moving averages all point to a continued downward trend. In this scenario, backtesting strategies can help determine if historical price patterns offer any clues for potential entry or exit points based on set criteria.

Backtesting Hypothesis

A backtesting approach was used to assess the effectiveness of a trend-following strategy for TOWNS. This method combined moving average crossovers with RSI levels. Specifically, a buy signal was generated when the 50-period moving average crossed above the 200-period moving average (golden cross) and the RSI dropped below 30, signaling oversold conditions. Conversely, a sell signal was triggered when the 50-period moving average fell below the 200-period moving average (death cross) and the RSI exceeded 70, indicating overbought conditions.

This strategy was tested on TOWNS’s historical price data over the past year. The results showed that the approach successfully identified major downturns with short positions, especially during the recent weekly and monthly declines. However, it struggled to produce profitable long trades due to the persistent negative trend. Overall, the findings underscore the difficulty of achieving gains in a prolonged bear market using only trend-following signals.