LINEA Drops 19.69% in 24 Hours During Significant Short-Term Downturn

As of September 24, 2025,

experienced a 19.69% decrease over the past day, falling to $1.211. Over the previous week, LINEA declined by 27.88%, but it has surged by 2711.12% in the last month and maintained the same growth over the past year.

After a sharp correction at the start of September 2025, LINEA has moved into a consolidation phase. The recent 19.69% drop in 24 hours highlights increased short-term price swings, mainly influenced by algorithmic trades and shifts in market liquidity. Although the monthly and yearly gains remain strong, the latest decline has sparked concerns about short-term stability and the risk of a further downturn.

Current technical analysis points to a mixed scenario. The 50-day moving average has crossed below the 200-day moving average, indicating a bearish signal. The Relative Strength Index (RSI) has dropped to around 28, signaling oversold conditions and the possibility of a short-term bounce. However, the stochastic oscillator reveals weakening momentum, suggesting that price stabilization may take time.

Market sentiment around LINEA has been shaped by recent protocol governance changes and liquidity adjustments. Developers have introduced several on-chain improvements aimed at boosting throughput and lowering gas fees for users. While the community has responded positively to these upgrades, they have yet to deliver immediate price stability. Experts believe these enhancements could gradually renew interest in the protocol, but any upward price movement is expected to unfold slowly rather than through rapid reversals.

Backtest Hypothesis

A suggested backtesting method seeks to test the effectiveness of a mean-reversion trading strategy in light of LINEA’s recent volatility. This approach involves entering long trades when the RSI dips below 30 and exiting when it rises above 50, with a stop-loss set at 15% below the entry price. The strategy also uses the 50-day EMA as a trend filter, ensuring trades are only made when the broader trend is upward.

The premise is that the combination of oversold RSI readings and a long-term uptrend could offer algorithmic traders a chance to benefit from potential rebounds. By applying this method to LINEA’s historical price data from the past year, traders can evaluate its effectiveness, risk-reward profile, and possible drawdowns.