TOWNS drops 12.32% over 24 hours as selling pressure persists
- TOWNS token fell 12.32% in 24 hours to $0.809, with 4123.19% annual decline showing extreme bearish momentum. - Technical indicators confirm prolonged weakness: RSI remains oversold, MACD signals bearish crossover, and price stays below key moving averages. - Proposed backtesting strategy uses 20/50-day MA and RSI thresholds to identify potential rebounds or continuation of downward trend. - Analysts warn of continued sideways/downward trading until market catalysts emerge to reverse severe long-term bea
As of SEP 27 2025,
TOWNS has undergone sustained and significant value losses across all major periods. In just the last 24 hours, the token’s price slid 12.32% to $0.809. This comes after a 1279.57% fall in the last seven days and a 1986.17% drop over the past month, highlighting a strong downward trend with no clear signs of recovery. The total decline of 4123.19% over the past year further emphasizes the persistent negative sentiment surrounding the asset.
Recent price movements have caught the eye of technical analysts, who have identified several bearish formations on important timeframes. TOWNS has been unable to reclaim crucial psychological price points in recent sessions and is currently trading below both its 50-day and 200-day moving averages. The relative strength index (RSI) has stayed in oversold territory for a prolonged period, with no indication of a rebound, pointing to weak buying interest even though the token may be undervalued.
Momentum indicators have weakened further, as the MACD line has crossed beneath the signal line, forming a bearish crossover. Combined with the lack of significant trading volume during price drops, this suggests that short-term traders and speculators are showing little confidence. Analysts expect TOWNS to continue moving sideways or downward unless a new catalyst emerges to spark renewed interest in the market.
Backtesting Approach
A suggested backtesting method seeks to determine how effective a systematic trading strategy might be for TOWNS during extended downtrends. This approach relies on technical indicators such as moving averages and RSI to spot possible short-term recoveries or ongoing downward moves. A long position would be considered if TOWNS closes above its 20-day moving average and the RSI is above 30, with a stop loss set at the most recent swing low and a target at the next significant resistance.
On the other hand, a short position is considered when TOWNS closes below its 50-day moving average and the RSI drops below 20, further confirming the bearish outlook. Positions are exited either when the target is met or the stop loss is triggered. This strategy is intended to evaluate whether disciplined entry and exit rules can produce gains in a strongly bearish market, despite the prevailing downward momentum.
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.
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