USDE dropped by 3.00% over the past 24 hours during the market adjustment

On September 24, 2025,

experienced a 3% decline over a 24-hour period, reaching $1.0004. Over the past week, USDE fell by 1%, and over the last month and year, it recorded a 3% decrease in each timeframe.

The latest drop in USDE’s value has sparked concern among stablecoin analysts, particularly as the token continues to weaken across several timeframes. Designed to maintain parity with the U.S. dollar, USDE has demonstrated volatility, slipping to $1.0004 from a higher level in the previous day. This decline is part of a broader pattern seen over the last month and year, with USDE losing 3% in both periods.

Technical analysis currently presents mixed outlooks for USDE’s short-term direction. Experts suggest that the ongoing decline could be the result of increased redemption activity or changes in market liquidity. Although USDE remains near its intended dollar value, the slight decrease emphasizes the necessity for strong reserves and transparent operations to maintain user trust. This recent price movement also highlights the ongoing difficulties both algorithmic and fiat-backed stablecoins face in keeping their value stable amid volatile market environments.

Despite the recent fluctuations, available data indicates that USDE’s volatility has not led to immediate liquidations or systemic threats. Nevertheless, market participants are monitoring the situation closely for any further weakening of the stablecoin’s peg. The response from the market will likely hinge on USDE’s ability to rebalance supply and demand, especially if redemption pressures continue.

Backtesting Hypothesis

One suggested backtesting approach is to review USDE’s historical performance during comparable market conditions to assess its resilience and potential for price recovery. This method utilizes technical tools such as moving averages and the relative strength index (RSI) to simulate scenarios where USDE drops 3% within a single day. The goal is to evaluate whether algorithmic corrections or reserve strategies could help stabilize the token or worsen its decline. The backtest will also examine how effective intervention measures are in restoring the peg, offering insights into the asset’s structural strength and the responsiveness of its governance.