DOLO surges by 500.43% within 24 hours as market volatility intensifies

On SEP 24 2025,

saw its value skyrocket by 500.43% in just one day, reaching $4.874. This sudden jump came after a prolonged period of decline, with DOLO dropping 2208.82% over the previous week, 6347.27% in the last month, and 4570.39% throughout the past year. The unexpected surge has drawn renewed interest from both traders and market analysts, who are now debating whether this marks a true trend reversal or is simply an isolated event.

Technical analysis points to mixed market signals. The asset’s impressive 24-hour rally stands in stark contrast to its ongoing bearish trajectory, resulting in conflicting momentum indicators. The Relative Strength Index (RSI) briefly moved into overbought territory, which often hints at a short-term peak, while the Moving Average Convergence Divergence (MACD) line crossed above its signal line, suggesting a possible shift toward bullish momentum. Still, given DOLO’s history of extreme volatility and persistent losses, these signals should be interpreted with caution.

Market experts believe that the recent price spike is likely driven by speculative trading or the unwinding of excessive short positions, rather than signaling a lasting trend change. Some have observed that such sharp rebounds have followed steep declines before, but there is little agreement on whether the current rally will hold. Considering DOLO’s track record, analysts recommend a cautious approach, warning that the present price may not accurately reflect the asset’s longer-term prospects.

Backtest Hypothesis

A backtesting method has been suggested to assess trading signals based on DOLO’s latest price action and historical volatility. This strategy aims to spot overbought conditions by analyzing RSI divergences and MACD crossovers, entering long trades when these signals align. Conversely, short trades are opened during bearish divergences and MACD bearish crossovers. The approach uses stop-loss and take-profit points determined by the asset’s 20-day volatility, seeking to control risk amid its unpredictable price movements.

The backtest is structured to evaluate how well these signals identify short-term trading opportunities while reducing risk during prolonged downturns. Given DOLO’s volatile nature, the model is tailored for high-frequency trading, targeting intraday or short-term moves. The results from this strategy will help gauge the significance of the recent price recovery and its implications for the broader market.