DOLO experiences a 121.98% decrease within 24 hours as market fluctuations persist

On September 27, 2025,

plunged by 121.98% in just 24 hours, falling to $4.447. Over the past week, DOLO has dropped 1627.82%, with a 6686.5% decline over the last month, and a 5074.64% decrease over the past year.

The sharp decline in DOLO’s value is the result of both broader economic pressures and specific weaknesses related to the asset itself. The token has faced challenges in retaining users and sustaining development activity, as shown by falling on-chain data. The latest wave of selling intensified an ongoing downward trend that started earlier this year, with no notable positive news to offset the negative momentum.

From a technical analysis perspective, DOLO’s chart indicates a strong downward trend with no immediate signs of recovery. Major support levels have been broken, and both the RSI and MACD indicators continue to signal bearish conditions. Unless a significant event or intervention occurs, this downward movement is likely to persist.

The market has responded to DOLO’s steep fall with little enthusiasm, as buying interest remains subdued despite the significant price drop. Experts anticipate further declines in the near term unless a major announcement or strategic change revives interest among investors and the community.

Backtest Hypothesis

A backtesting approach was suggested to evaluate the effectiveness of short-selling during periods of heightened volatility in DOLO’s price. This method uses technical tools like RSI, MACD, and moving averages to pinpoint optimal entry and exit moments. The premise is that initiating short trades during overbought scenarios, confirmed by momentum indicator divergence, could be profitable given the asset’s current trajectory.

The strategy involves opening short positions when the RSI surpasses 70, the MACD indicates bearish divergence, and the price drops below a crucial moving average. Exits are signaled when the RSI dips under 30 or when the price approaches a key support level without breaching it. This method seeks to take advantage of clear downward trends without depending on fundamental news.