0G has dropped by 763.15% since the start of the year following a significant sell-off

On September 23, 2025, 0G experienced a dramatic 761.56% plunge within a single day, dropping to $5.368. Over the last week, the asset declined by 763.15%, mirroring the same percentage drop over the past month and year. This uniform and steep decrease across all timeframes points to a major liquidity crisis or a sudden, broad factor severely impacting the asset’s price.

This rapid fall has led to intense market volatility and triggered widespread liquidations. Investors who bought 0G at its yearly peaks have seen all their profits wiped out, with current prices representing a significant loss of their original investment. The absence of any divergence between short- and long-term trends signals a fundamental disruption in the asset’s market structure, rather than just a short-lived correction.

Technical analysis for 0G reveals strong bearish momentum. The Relative Strength Index (RSI) has dropped below 30, signaling that the asset is oversold, while the Moving Average Convergence Divergence (MACD) has moved beneath its signal line, showing growing negative momentum. Typically, these patterns indicate that upward momentum has faded and further declines are likely. However, due to the extraordinary drop, many indicators are now outside their usual ranges, which may limit their reliability under current conditions.

Backtest Hypothesis

An outlined backtesting method for 0G would focus on past instances where the RSI dipped under 30 and the MACD entered deep negative territory. The approach would involve opening long positions after a 20% bounce from these extreme lows, with a set stop-loss at 10% and a take-profit at 20%. The goal is to benefit from potential recoveries after sharp sell-offs. This strategy assumes that, despite the ongoing downturn, the asset might display cyclical rebounds following severe declines.