FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn

On September 12, 2025, FUN experienced a sharp decline of 32.34% within a single day, falling to $0.008938 and signaling a significant price correction. Over the past week, the token plummeted by 432.46%, and its value has dropped 541.8% over the last month, highlighting an ongoing downward trend. In the past year, FUN's price has tumbled by 1947.75%, pointing to a consistent erosion of investor trust in the asset.

In light of this steep drop, the crypto community has shifted its focus to analyzing the technical and fundamental reasons for the recent selloff. Market analysts have pointed out that critical support levels have been breached, indicating a growing risk-averse sentiment. Several on-chain indicators reveal heightened selling activity, with major exchanges reporting significant outflows. The swift decline has also triggered a wave of forced liquidations, intensifying the negative momentum.

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While the recent volatility aligns with overall market movements, FUN has lagged behind its sector peers. The downward slide appears mostly tied to technical weakness rather than any particular fundamental developments. Market participants are debating whether the current valuation marks a short-term bottom or signals that the bearish phase will persist. Experts believe the next key support zone lies below $0.0080, and a break below this threshold could lead to sharper losses.

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Several prominent technical signals indicate that the market might be shifting into either a consolidation period or the start of another bearish cycle. Both the 200-day and 50-day moving averages are trending sharply lower, reinforcing bearish sentiment. The Relative Strength Index (RSI) is below 30, and the MACD has crossed into negative territory, together confirming continued downward momentum. These indicators form the basis for a backtesting strategy to assess potential market responses to the ongoing decline.

Backtesting Strategy Hypothesis

The outlined backtesting plan adopts a trend-following methodology, operating under the assumption that FUN’s bearish momentum will persist in the short term. This approach involves initiating short trades when technical indicators like RSI and MACD confirm a bearish outlook. Stop-loss orders are set slightly above the latest swing highs, while profit targets are established at key Fibonacci retracement levels and historical support points. The objective is to profit from extended downward trends while managing the risk of abrupt reversals.

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