WLFI - -38.63% 24H Drop Amid Market Volatility

WLFI dropped by 38.63% within 24 hours to reach $0.206 on SEP 13 2025. Over the past seven days, the asset saw a decline of 227.38%, while over the last month and year, it fell by 1164.88% in both periods. The sharp drop has drawn attention from market participants, with many analyzing the technical and structural factors behind the move.

The recent price action reflects a pronounced bearish bias. Following a sustained downtrend, WLFI has failed to regain momentum despite several attempts to stabilize near key support levels. Analysts have noted the lack of significant short-term buyers, indicating broader sentiment remains bearish. The absence of major institutional inflows or bullish signals further supports this view.

Technical indicators show a deepening bearish divergence. The Relative Strength Index (RSI) has moved well into oversold territory, while the Moving Average Convergence Divergence (MACD) has failed to confirm any bullish momentum, continuing to trend downward. These signs suggest that WLFI is in a phase of extended distribution, with price behavior reinforcing the likelihood of continued downward pressure in the near term.

The prevailing technical structure indicates a breakdown in key psychological levels, with the 200-day moving average now acting as resistance rather than support. This inversion of role is typically seen in prolonged bear markets and suggests that WLFI remains in a long-term bearish cycle. Analysts project that further declines may continue until a new support base is established or a reversal pattern becomes evident in the price structure.

Backtest Hypothesis

A potential backtesting strategy involves identifying key support and resistance levels based on historical price data and applying a trend-following approach. The strategy would enter a short position once the price breaks below a confirmed support level, with a stop-loss placed just above the nearest resistance. A trailing stop would be used to lock in gains as the price continues downward. The target for exit is based on the magnitude of the previous move from the resistance level to the support level. This approach aims to capture continuation moves in a bearish trend and is designed to be applied strictly to price action without reliance on external news or market sentiment.