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LUNA Plunges 80.61% Over the Past Year as Market Fluctuations and Technical Weakness Persist

LUNA Plunges 80.61% Over the Past Year as Market Fluctuations and Technical Weakness Persist

Bitget-RWA2025/11/07 13:14
By:Bitget-RWA

- LUNA fell 0.74% in 24 hours, with 14.1% weekly and 13.92% monthly declines, reflecting sustained bearish pressure. - Technical indicators like RSI and MACD confirm bearish momentum, with key support levels breached and moving averages underscoring the downtrend. - Backtesting shows limited short-term recovery after 10%+ drops, with weak statistical significance and high outcome dispersion. - Analysts warn LUNA remains in a long-term bear market, lacking bullish catalysts and facing continued downside ris

As of November 7, 2025,

slipped by 0.74% over the previous 24 hours, settling at $0.0803. This continued decline highlights persistent downward momentum in the token’s recent trajectory. In the last week, LUNA dropped 14.1%, and over the past month, it lost 13.92%. Over the past year, the token has shed more than 80% of its value, underscoring ongoing market difficulties and shifting investor sentiment.

The declines seen over both the daily and weekly periods point to a prevailing bearish environment, with LUNA facing sustained selling pressure amid turbulent market conditions. The price action fits into a broader long-term downtrend, as the token remains well below its historical highs. Market observers note that this drop is part of a larger pattern, and so far, there has been little buying interest to counteract the ongoing sell-off.

From a technical perspective, LUNA’s recent price movement has breached important support zones that previously helped limit losses. The 7-day and 1-month downturns indicate that

is persisting, with additional support levels likely to be challenged soon. The token is currently trading beneath key moving averages, which further confirms the negative outlook. Traders are monitoring for any signs of a reversal, but there is no clear evidence of a bottom forming at this time.

Wider market trends continue to favor risk-averse approaches, and LUNA is lagging behind most comparable cryptocurrencies. The absence of positive drivers, such as regulatory progress or major project announcements, has left the token exposed to ongoing sector rotation. Analysts point out that without a clear catalyst for change, LUNA is expected to remain under pressure.

Technical signals indicate that the sell-off may not have run its course, as downward momentum remains dominant. The relative strength index (RSI) continues to fall, reflecting weak buying interest and ongoing bearish sentiment. The MACD (Moving Average Convergence Divergence) also remains negative, reinforcing the prevailing downtrend. Together, these indicators suggest that LUNA could face further declines in the near future, especially if critical support levels are broken.

Backtest Hypothesis

To analyze LUNA’s behavior after major price drops, a backtest was conducted using data from January 1, 2022, to November 7, 2025. The study examined 57 occurrences where LUNA declined by 10% or more in a single day. On average, the token’s return the following day was -1.5%, with a win rate of about 39%, indicating limited potential for short-term rebounds.

Looking at the 30 days after such drops, the average cumulative return was +23.4%. However, this result lacked strong statistical backing, as the t-statistic did not show a significant advantage. The wide range of outcomes means that while some periods saw notable recoveries, others continued to decline, making it unreliable to base a trading strategy on this pattern alone.

Signs of mean reversion appeared between days 6 and 10, but the confidence intervals remained broad, suggesting considerable uncertainty. This means that although there are occasional rebound patterns, they are not strong enough to justify a systematic trading approach.

The backtest used a methodology based on close-to-close percentage changes, triggered by single-day drops of -10% or more, and evaluated performance over a 30-day window. The benchmark was LUNA’s unconditional drift, representing a buy-and-hold approach for the same timeframe. A two-tailed t-test was applied to determine the statistical significance of mean returns across events.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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