WLFI +10.12% in 24 Hours Amid Market Volatility

On SEP 25 2025, WLFI surged by 10.12% in the last 24 hours, reaching $0.1973, despite a significant decline of 1184.86% over the past seven days and a year-to-date drop of 1524.63%. The recent price movement highlights a sharp intraday rebound following prolonged bearish momentum.

The immediate upward shift came amid increased on-chain activity and elevated trading interest, with a notable uptick in large wallet transactions. While no major exchange listings or institutional announcements were reported, market participants noted a brief retesting of critical support levels before a reversal occurred. The 24-hour rally did not break previous resistance levels but managed to stabilize the price at a key psychological threshold, offering short-term optimism among retail traders.

From a technical perspective, WLFI’s price structure remains highly bearish over medium to long-term horizons. The 7-day and 1-month declines are indicative of an asset under deep pressure, with price action failing to form sustainable bullish patterns. The Relative Strength Index (RSI) remains in oversold territory, yet has not produced a definitive reversal signal. Meanwhile, the moving average convergence divergence (MACD) has continued to trend downward, suggesting further bearish momentum is likely unless a sustained buying wave emerges.

Despite the recent bounce, on-chain metrics continue to show a net outflow of tokens from exchanges, signaling long-term holders are maintaining their positions. In contrast, short-term traders and speculators are actively liquidating small to medium-sized positions, contributing to the broader bearish trend. The absence of any fundamental developments or macroeconomic factors supporting a reversal has left the market in a state of cautious observation.

Backtest Hypothesis

To evaluate potential market responses under similar conditions, a hypothetical backtesting strategy has been proposed. This approach is based on a set of technical indicators, including RSI, MACD, and on-chain volume flows, to determine whether a defined set of entry and exit rules could have captured the recent 24-hour upward movement. The strategy focuses on detecting overextended bearish conditions and measuring the likelihood of a short-term rebound.

Using historical data up to SEP 25 2025, the backtest would simulate a long position triggered when RSI falls below 20 and volume surges by 50% compared to the 7-day average. A sell signal would be activated upon the RSI crossing above 50 or after a three-day price consolidation period. The goal is to assess the strategy's viability in capturing short-term countertrend moves without requiring fundamental catalysts.