WLFI -1794.43% in 1 Year Amid Regulatory and Market Pressures

On SEP 24 2025, WLFI dropped by 264.23% within 24 hours to reach $0.1925, WLFI dropped by 1298.82% within 7 days, dropped by 1794.43% within 1 month, and dropped by 1794.43% within 1 year.

The sharp depreciation of WLFI has triggered intense scrutiny from investors and analysts, with many tracing the decline to a series of regulatory and market-driven factors. Earlier in the month, reports emerged of heightened regulatory investigations into WLFI’s compliance practices, citing concerns over governance and transparency. While no official sanctions have been imposed, the uncertainty has contributed to a sell-off, compounding the asset’s already weak fundamentals.

Technical indicators have also reflected the deteriorating sentiment. The Relative Strength Index (RSI) has moved into extreme oversold territory, while the Moving Average Convergence Divergence (MACD) histogram has remained negative for an extended period, signaling prolonged bearish pressure. These metrics suggest a lack of immediate buyer interest and limited potential for near-term recovery.

Backtest Hypothesis

A backtesting strategy has been proposed to evaluate a potential market response to WLFI's recent performance. The strategy involves identifying key support levels and evaluating the probability of a bounce based on historical behavior. The approach uses a time-based threshold of 14 days to assess whether a price retest occurs after a 30% correction. The hypothesis posits that if a price rebounds and closes above the 20-day moving average within this window, a short-term reversal may be in play. However, given the prolonged decline and deteriorating technicals, the likelihood of such a scenario remains low unless there is a material shift in the regulatory or market environment.