On September 11, 2025, WLFI experienced a dramatic 173.35% climb in just 24 hours, peaking at $0.2014. Despite this, the asset has plunged by 499.77% over the past week and has dropped an even steeper 1207.71% over both monthly and yearly periods. These numbers underscore how turbulent WLFI's market behavior has been lately.
The swift price increase in the previous day occurred without significant news tied directly to the WLFI project. Market experts suggest this move may have resulted from speculative activity or arbitrage that emerged due to uneven liquidity across exchanges. Although there was a temporary surge, the overall trend for WLFI remains bearish over the longer term.
While volatility has always been a hallmark of WLFI, the current cycle of sudden spikes followed by steep drops is unusually pronounced. The extent of recent weekly and monthly losses greatly exceeds the asset's typical downturns, prompting doubts about the durability of its price action and fundamentals.
Technical analysis indicates that WLFI is now in an extremely oversold state after the steep recent declines. Some investors are speculating on a potential short-term recovery, particularly in light of yesterday's rally. Nevertheless, the dominant momentum is still negative, with persistent selling pressure. Both RSI and MACD reveal persistent bearish divergence, and the 50-day and 200-day moving averages continue to slope downward, supporting a pessimistic outlook.
Backtest Hypothesis
A backtesting method was developed to analyze possible trade signals for WLFI, combining RSI divergence with moving average crossovers. This strategy is designed to identify short-lived recoveries within an overall downward trajectory by spotting oversold signals and early momentum changes. Trades are initiated when the RSI signals deep oversold conditions and the 12-period MACD crosses above its signal line, while stop-loss and take-profit levels are set according to recent support and resistance. Although this approach is still being tested, it aims to take advantage of WLFI's pattern of brief rallies amid a prevailing bearish trend.