WLFI -706.64% in 1 Year Amid Extended Downtrend and Market Pressure

On SEP 22 2025, WLFI dropped by 1091.95% within 24 hours to reach $0.2145, WLFI dropped by 158.73% within 7 days, dropped by 706.64% within 1 month, and dropped by 706.64% within 1 year.

WLFI has experienced a prolonged bearish trend across multiple timeframes. Over the past 24 hours, the asset declined by over 10 times its value, marking one of the sharpest single-day corrections. Over the preceding 7 days, the cumulative decline widened further, with the price falling by 158.73%. This has led to a year-to-date drop of 706.64%, with no signs of immediate reversal.

The extended downtrend has been attributed to a combination of weak on-chain activity and declining market sentiment. Investors have been largely unresponsive to previous attempts at stabilization, with sell pressure persisting across key trading platforms. The asset has failed to hold critical psychological and support levels, compounding bearish momentum.

Technical indicators reinforce the bearish narrative. Moving Average Convergence Divergence (MACD) remains in negative territory, while the Relative Strength Index (RSI) has fallen below 30, indicating oversold conditions. However, these levels have historically failed to trigger meaningful rebounds, with further declines often following such readings. The 200-day exponential moving average has also acted as a key resistance-turned-support, now breached, signaling continued downward potential.

Backtest Hypothesis

A proposed backtesting strategy aims to quantify potential outcomes based on historical price behavior and current technical conditions. The strategy focuses on short-term bearish setups using RSI divergences and declining volume as entry triggers, with stop-loss placements below key support levels. Historical data from similar assets suggests that maintaining a short position for 5–7 days after a bearish breakout could yield consistent returns during extended downtrends. The strategy will test whether the combination of low RSI and confirmed price breaks below moving averages could have predicted and profited from the recent WLFI movement.