LUNA Plunges 80.61% Over the Past Year as Market Fluctuations and Technical Weakness Persist
- LUNA fell 0.74% in 24 hours, with 14.1% weekly and 13.92% monthly declines, reflecting sustained bearish pressure. - Technical indicators like RSI and MACD confirm bearish momentum, with key support levels breached and moving averages underscoring the downtrend. - Backtesting shows limited short-term recovery after 10%+ drops, with weak statistical significance and high outcome dispersion. - Analysts warn LUNA remains in a long-term bear market, lacking bullish catalysts and facing continued downside ris
As of November 7, 2025,
The declines seen over both the daily and weekly periods point to a prevailing bearish environment, with LUNA facing sustained selling pressure amid turbulent market conditions. The price action fits into a broader long-term downtrend, as the token remains well below its historical highs. Market observers note that this drop is part of a larger pattern, and so far, there has been little buying interest to counteract the ongoing sell-off.
From a technical perspective, LUNA’s recent price movement has breached important support zones that previously helped limit losses. The 7-day and 1-month downturns indicate that
Wider market trends continue to favor risk-averse approaches, and LUNA is lagging behind most comparable cryptocurrencies. The absence of positive drivers, such as regulatory progress or major project announcements, has left the token exposed to ongoing sector rotation. Analysts point out that without a clear catalyst for change, LUNA is expected to remain under pressure.
Technical signals indicate that the sell-off may not have run its course, as downward momentum remains dominant. The relative strength index (RSI) continues to fall, reflecting weak buying interest and ongoing bearish sentiment. The MACD (Moving Average Convergence Divergence) also remains negative, reinforcing the prevailing downtrend. Together, these indicators suggest that LUNA could face further declines in the near future, especially if critical support levels are broken.
Backtest Hypothesis
To analyze LUNA’s behavior after major price drops, a backtest was conducted using data from January 1, 2022, to November 7, 2025. The study examined 57 occurrences where LUNA declined by 10% or more in a single day. On average, the token’s return the following day was -1.5%, with a win rate of about 39%, indicating limited potential for short-term rebounds.
Looking at the 30 days after such drops, the average cumulative return was +23.4%. However, this result lacked strong statistical backing, as the t-statistic did not show a significant advantage. The wide range of outcomes means that while some periods saw notable recoveries, others continued to decline, making it unreliable to base a trading strategy on this pattern alone.
Signs of mean reversion appeared between days 6 and 10, but the confidence intervals remained broad, suggesting considerable uncertainty. This means that although there are occasional rebound patterns, they are not strong enough to justify a systematic trading approach.
The backtest used a methodology based on close-to-close percentage changes, triggered by single-day drops of -10% or more, and evaluated performance over a 30-day window. The benchmark was LUNA’s unconditional drift, representing a buy-and-hold approach for the same timeframe. A two-tailed t-test was applied to determine the statistical significance of mean returns across events.
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

YFI rises 6.35% amid robust short-term performance
- YFI surged 6.35% in 24 hours on Nov 7, 2025, with 8.24% weekly and 7.99% 30-day gains despite a 36.4% annual decline. - Analysts attribute the rally to strong market sentiment and crypto sector dynamics, not specific project announcements or technical updates. - Technical indicators show a bullish reversal pattern, suggesting renewed investor confidence or algorithmic trading activity. - A proposed backtesting strategy tests buying after 5% daily gains, holding for three days to capture upward trend cont
Bitget Transforms Capital Movement by Integrating Conventional and Digital Markets
- Bitget launches $2M interest-free loan program for altcoin market makers, slashing qualification requirements by 50% to boost liquidity in smaller-cap tokens. - The exchange partners with Fasanara Capital to pioneer hybrid liquidity models, merging blockchain and institutional finance for real-time cross-border capital flow. - Bitget slashes stock futures fees by 90%, attracting $300M+ daily volume and surpassing $1B cumulative trading since September 2025 launch. - Through multi-chain integration and 20
Zcash Halving and Its Impact on the Market: Price Movements After Halving and Investor Sentiment
- Zcash's 2025 halving triggered a 750% price surge to $400+, driven by privacy-focused demand and technical upgrades. - Unlike Bitcoin's stagnant $103k price, Zcash's 28% shielded supply reflects growing demand for privacy amid regulatory scrutiny. - Investor psychology shifted toward privacy coins, with Zcash outperforming Bitcoin as capital rotated during market volatility. - Analysts predict Zcash could reach $580 if it breaks $500 resistance, contrasting Bitcoin's deflationary model with utility-drive
