WLFI - 24-hour decline of -38.63% as market fluctuations persist

WLFI plummeted by 38.63% in a single day, reaching $0.206 on September 13, 2025. Over the past week, the asset experienced a sharp 227.38% decline, and in both the last month and year, it dropped by 1164.88%. This dramatic fall has captured the attention of market observers, prompting many to investigate the technical and structural causes behind the decline.

Recent market behavior highlights a strong bearish sentiment. After an extended period of decline, WLFI has been unable to regain strength, despite repeated attempts to stabilize at crucial support zones. Experts have pointed out a notable absence of short-term buyers, reflecting pervasive pessimism. The lack of substantial institutional investment or positive signals further reinforces the negative outlook.

Technical metrics indicate an intensifying bearish divergence. The Relative Strength Index (RSI) has dropped deep into oversold levels, and the Moving Average Convergence Divergence (MACD) has not provided any signs of bullish reversal, continuing its downward movement. These indicators suggest that WLFI is undergoing a prolonged distribution phase, increasing the probability of sustained downward momentum in the short term.

The current technical landscape reveals significant breaches of psychological price levels, as the 200-day moving average has flipped from support to resistance. This transition is commonly observed during extended bear markets, indicating that WLFI remains entrenched in a bearish trend over the long run. Analysts anticipate further drops until either a new support foundation is formed or a clear reversal emerges in the price action.

Backtest Hypothesis

An example backtesting method could focus on pinpointing major support and resistance points using historical price movements, implementing a trend-following strategy. The approach would involve entering a short trade after the price decisively falls below a verified support, setting a stop-loss just above the closest resistance. A trailing stop would help secure profits as the price continues to fall. The exit target would be based on the distance between the previous resistance and support levels. This method is designed to take advantage of ongoing bearish trends and relies exclusively on price action, without factoring in external news or market mood.