LINEA has surged by 1936.66% over the past year, driven by robust upward momentum

On September 15, 2025, LINEA saw a significant price drop, plunging 655.38% within a single day to a low of $1.1664. Despite this sharp correction, the asset quickly rebounded, maintaining a strong long-term bullish momentum and achieving a 1936.66% increase over the past year. This pronounced fluctuation highlights the asset's inherent volatility, while also emphasizing its persistent upward movement throughout recent months and the year as a whole.

Although the 24-hour decline was considerable, it appeared to fuel a surge in buying activity in the short term. Such intense volatility may indicate market risk, but the rapid recovery points to solid demand. Analysts observed that LINEA’s broader trend remains intact, with identical gains of 1936.66% recorded both monthly and annually. This consistency suggests that the bullish trend is well-established, and there is no evidence of a shift toward a bearish phase over the longer period.

From a technical standpoint, the recent erratic price action deviated from LINEA’s prevailing upward trend but did not disrupt its overall positive trajectory. Experts noted the lack of notable bearish indicators following the sharp dip, suggesting the correction may have been exaggerated. As a result, there is speculation that the sell-off provided an attractive entry point rather than signaling further downside risk. Still, conclusions remain dependent on ongoing market developments.

Technical analysis reveals that after the recent price fall, LINEA has successfully maintained gains and stayed above major support levels. Momentum oscillators are still in overbought zones, implying strong performance but also advising some caution. Both RSI and MACD continue to show a bullish divergence, supporting the outlook that the asset’s upward momentum is ongoing.

Backtest Hypothesis

To evaluate whether LINEA’s positive momentum can be sustained, a backtesting approach has been developed. This strategy relies on technical indicators such as RSI and MACD to generate buy and sell signals. The main premise is that LINEA’s price actions will keep reflecting the long-term bullish behavior suggested by these indicators, particularly when overbought divergences repeat.

The backtest simulates trade entries and exits based on signals from RSI divergence and MACD crossovers. It assesses if a long position, opened after the latest correction, would yield gains over the next 30 days. The assumption is that the recent sharp decline was a brief deviation rather than a lasting downtrend. By monitoring essential support areas and confirming continued bullish momentum, this method seeks to verify the ongoing strength of LINEA’s upward trend.