WCT -82.16% 24H Drop Amid Sudden Market Correction

On SEP 3 2025, WCT dropped by 82.16% within 24 hours to reach $0.3057, marking one of the most severe single-day corrections in recent memory. Over the past week, the asset has declined by 294.81%, while its monthly drop stands at 252.36%. However, a significant 4485% appreciation over the past year indicates the market had previously undergone a robust rally before the recent downturn.

The sharp decline has raised questions about the underlying causes of the correction. Preliminary assessments suggest the move could be attributed to a sudden shift in investor sentiment and liquidity pressures across key trading platforms. The asset had previously been supported by speculative trading and increased participation from new market entrants. However, recent data indicate a rapid unwinding of these positions amid heightened market uncertainty.

From a technical standpoint, WCT’s price movement has broken below key support levels, raising concerns among traders. The Relative Strength Index (RSI) has fallen into oversold territory, and the Moving Average Convergence Divergence (MACD) has shown a sharp divergence from price action, suggesting further downside risk in the near term. Analysts project that without a reversal in sentiment or a catalyst to attract buyers, WCT may continue to underperform in the coming sessions.

Backtest Hypothesis

A potential backtest strategy for WCT involves using a combination of RSI and MACD to identify early signs of market exhaustion and trend reversals. The hypothesis assumes that when RSI crosses into oversold territory (below 30) and the MACD histogram begins to contract while the price remains in a downtrend, it signals an opportunity for a short-term reversal. This approach would be tested over a historical period to evaluate its effectiveness in capturing short-term rebounds within a broader bearish context.