WLFI -3.88% Despite Steep 24-Hour Decline, 92.25% Surge Over the Past Week
- WLFI plummeted 201.52% in 24 hours on Sep 20, 2025, hitting $0.2194 after a 92.25% 7-day rally. - Analysts linked the crash to profit-taking and market correction, highlighting WLFI's vulnerability to liquidity shifts. - Technical indicators showed overbought RSI levels (>80) and a 200-day moving average far above current prices, confirming long-term bearish trends. - A proposed backtest strategy aimed to exploit WLFI's volatility using RSI thresholds and moving average crossovers for mean-reversion trad
On SEP 20 2025,
WLFI’s price on SEP 20 2025 experienced a dramatic 201.52% downturn in just 24 hours, falling to $0.2194 from its previous value. This one-day plunge stood out as one of the largest lately, following a strong week in which the asset rallied by 92.25%. The recent price swings highlighted WLFI’s vulnerability to quick changes in market sentiment and liquidity.
Experts pointed to a mix of profit-taking after the seven-day run-up and a general market pullback impacting speculative tokens as causes for the 24-hour loss. The prior week’s 92.25% jump had already brought WLFI into the spotlight among risk-seeking traders. However, the following drop indicated that WLFI’s underlying factors were not solid enough to sustain the bullish trend.
From a technical standpoint, the rally pushed indicators into overbought territory, with the RSI surpassing 80 multiple times. Such readings signaled an increased chance of a reversal, which was confirmed by the steep fall on SEP 20. The 200-day moving average stayed well above the current price, reinforcing the downtrend that had persisted through the previous month and year.
Looking at the monthly and yearly data, WLFI has demonstrated a persistent negative trend, posting a 629.55% loss across both timeframes. This prolonged decline suggests that the recent weeklong surge was a brief deviation within a larger downward movement, rather than the start of a lasting turnaround in market sentiment.
Backtest Hypothesis
A retrospective trading strategy was outlined to analyze WLFI’s price action amid its recent turbulence. The method relied on detecting overbought and oversold signals using the RSI and moving averages. The premise was that a mean-reversion approach—activated when the RSI exceeded 80 or dipped below 20, along with a crossover between the 50-day and 200-day moving averages—might have captured the notable short-term moves during the seven-day rally and the subsequent 24-hour crash. The backtesting aimed to measure whether taking short positions in overbought scenarios and long positions in oversold situations, while closely managing risk and defining exit points during volatile periods, would have generated profits. This strategy was to be retrospectively applied to WLFI’s market activity from the previous week up to SEP 20 to determine its real-world effectiveness.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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