TOWNS surges by 101.12% within 24 hours as market experiences undefined volatility

On September 23, 2025, TOWNS saw a dramatic surge during the day, soaring by 101.12% in just 24 hours to reach $0.895. However, despite this impressive daily gain, the token has suffered significant losses over longer periods, dropping 2134.73% in the past week, 1116.6% over the last month, and an extraordinary 3485.51% in the past year. This stark contrast between short-term spikes and prolonged declines has caught the attention of market watchers.

The recent surge in TOWNS appears to be fueled by increased speculative trading, as there have been no official statements or fundamental news linked to the 24-hour price jump. With no announcements regarding new partnerships, governance changes, or protocol updates, it seems likely that the movement is a result of broader market trends or specific trading strategies. Experts warn that such volatility may continue, especially in the absence of clear structural drivers, and note that rapid price increases often lack sustainable momentum.

Technical analysis presents a mixed outlook. Historically, overbought signals have preceded market corrections, and while the recent 24-hour rally points to a brief shift in sentiment, longer-term metrics still indicate a bearish outlook. This mismatch between short-term and long-term signals highlights ongoing market uncertainty and suggests that the recent rally may not be underpinned by solid demand.

Backtesting Strategy

A new backtesting approach has been introduced to assess whether TOWNS could be profitable under certain market scenarios. This strategy relies on a mean-reversion framework, using both the RSI and Bollinger Bands to trigger trades. Buy opportunities arise when the RSI falls below 30 and the price touches the lower Bollinger Band, signaling a possible reversal. Conversely, sell signals occur when the RSI exceeds 70 or the price crosses above the upper Bollinger Band.

The strategy aims to take advantage of short-term price swings while reducing risk during extended downturns. Its effectiveness depends largely on how often and how strongly these mean-reversion patterns appear, which seem to be less frequent in TOWNS' recent price movements. The backtest seeks to evaluate whether these signals, if they worked in the past, can still be effective now or if changes in market dynamics have diminished their reliability.