WLFI -52.83% in 24 Hours Amid Sharp Volatility

On OCT 3 2025, WLFI dropped by 52.83% within 24 hours to reach $0.2072, marking the continuation of a turbulent trading period for the asset. Over the past 7 days, the price had fallen by 616.22%, while a 555.56% rise had been recorded over the previous month. Despite the short-term surge in the past month, WLFI’s price has declined by 1130.62% over the last year, indicating a long-term bearish trend amid sharp price fluctuations.

WLFI’s recent performance reflects heightened volatility, with significant price corrections occurring within short timeframes. Traders and investors have observed sharp pullbacks despite intermittent bullish momentum. The rapid 24-hour decline has intensified scrutiny over market dynamics and potential catalysts behind the sharp sell-off. While no official announcements or events have been linked to the price movement, market participants are closely watching for signs of stability or further deterioration in the asset’s fundamentals.

Technical indicators suggest that WLFI is in a state of overselling following the recent sharp drop. The RSI has dipped below the 30 threshold, typically indicating that the asset may be undervalued and due for a potential bounce. However, this condition has occurred multiple times in recent months without resulting in a consistent rebound. The MACD line has also crossed below the signal line, reinforcing bearish momentum and suggesting a continuation of the downward trend in the near term.

Backtest Hypothesis

In light of the recent technical indicators, a backtesting strategy was developed based on a combination of RSI and MACD signals. The strategy aims to identify potential oversold conditions and divergences in momentum that could signal a short-term reversal. Using historical data, the strategy triggers a buy signal when RSI drops below 30 and MACD crosses above the signal line, while a sell signal is generated when RSI exceeds 70 and MACD crosses below the signal line. The strategy is designed to capitalize on short-term price corrections while managing risk through defined stop-loss levels. Initial results from the backtest suggest that the strategy could have captured several short-term gains during past volatility episodes, though it would have also been exposed to drawdowns during extended bearish periods.