USDE declines 13.99% over one month as stable peg weakens and overall market conditions worsen

As of September 22, 2025,

experienced a 1% decrease over the past day, falling to $0.999. Over the previous week, USDE declined by 12.99%, and over both one month and one year, it registered a 13.99% decrease.

This asset, intended to stay equal in value to the US dollar, has been slipping steadily for the last month. Although USDE is still trading very close to one dollar, the 13.99% drop over the last 30 days has prompted concerns about the stability of its protocol and the variety of its collateral. This development mirrors a wider trend where stablecoins are facing stress due to increased market turbulence and a move towards safer, more liquid assets.

From a technical perspective, USDE is showing signs of a bearish consolidation, as both its 20-day and 50-day exponential moving averages have now dropped below the 100-day average. This technical setup often points to declining momentum and suggests the likelihood of additional losses. Some analysts believe USDE might soon approach $0.997, especially if the overall sentiment towards stablecoins continues to worsen.

Backtest Hypothesis

Based on USDE’s recent price action and historical fluctuations, a backtesting approach has been suggested to explore possible trading outcomes using technical analysis. This approach centers on identifying opportunities through moving average crossovers and RSI divergence within a long-short trading structure. The thesis is that the recent downward trend in USDE could allow for a controlled-risk long position, particularly if the price bounces after a brief correction. The strategy incorporates a stop-loss to manage potential losses, provided the market environment does not change significantly.