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BFUSD jumps 6.01% in 24 hours as market experiences heightened volatility

BFUSD jumps 6.01% in 24 hours as market experiences heightened volatility

Bitget-RWA2025/09/24 04:08
By:CryptoPulse Alert

- BFUSD surged 6.01% in 24 hours to $0.9994, contrasting 7% weekly and 2% monthly/annual declines. - Technical indicators show overbought conditions near $1.00 resistance, with RSI/MACD signaling potential profit-taking. - Price volatility attributed to algorithmic trading and liquidity rebalancing, not fundamental governance changes. - Backtesting proposes mean-reversion strategy using 50/200-day MA and RSI to exploit short-term volatility patterns.

As of September 24, 2025,

climbed 6.01% over the past day, reaching $0.9994. Over the last week, BFUSD fell by 7%, and it also saw a 2% decrease over both the past month and the previous year.

Despite a broader downward trend in its weekly and monthly charts, BFUSD posted a significant 24-hour gain. The token rebounded to $0.9994 from a lower price point, reflecting a short-term shift in trader sentiment. This daily increase occurred even as the token experienced a 7% drop over the week and a steady 2% decline

The contrast between daily and longer-term movements underscores the token’s sensitivity to both speculative trading and broader market influences.

Technical analysis points to an uncertain short-term outlook for BFUSD. Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicate that the token may be overbought after its recent rally. This could prompt some investors to take profits, while also suggesting that the market is testing support levels. The $1.00 mark stands out as a psychological resistance for stablecoins, and surpassing it could boost investor optimism. The 200-day moving average continues to serve as a key indicator for the long-term trend.

The latest price surge in BFUSD is largely attributed to algorithmic trading shifts and liquidity provider adjustments. Experts believe that any further gains will depend on the token’s ability to maintain its US dollar peg during ongoing market volatility. Stable trading patterns over 24 hours and persistent buying from automated systems have contributed to the recent recovery. However, there have been no significant updates to the project’s governance or underlying assets to explain the price movement.

Backtest Hypothesis

The backtesting approach being evaluated aims to take advantage of BFUSD’s price swings by using a mean-reversion model that responds to deviations from its 50-day and 200-day moving averages. The main premise is that when the price strays from these averages, it will eventually revert, especially when RSI readings point to overbought or oversold conditions. This method seeks to capture short- to medium-term reversals, with risk managed through stop-losses and trailing take-profit settings.

This strategy matches BFUSD’s recent price action, where a sharp drop was quickly followed by a rebound. If the token continues to fluctuate within a set range without breaking out or down, the approach could yield steady returns by exploiting short-term market fluctuations. With technical indicators currently lacking a clear trend and no major fundamental drivers, this hypothesis provides a systematic way to benefit from short-term volatility.

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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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