WLFI -17.28% During Technical Disparity and Downward Trend

On September 15, 2025, WLFI experienced a sharp decline of 57.03% in just 24 hours, bringing its value down to $0.2098. Over the previous week, WLFI had surged by 361.57%, but it subsequently plummeted by 1,040.69% over the last month and maintained the same drop over the past year.

WLFI's recent movements have caught the attention of market participants due to the notable gap between its price action and momentum indicators. Although the asset witnessed a brief jump of 361.57% within seven days, it rapidly retraced, losing 57.03% in the subsequent 24 hours. This abrupt reversal has sparked debates about the rally’s durability, especially after a drastic 1,040.69% decrease in the last month. The lack of corresponding buying activity suggests that bullish momentum may be waning.

Technical tools like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are sending negative signals. The RSI has slipped into oversold levels but has yet to produce a robust bounce, while the MACD has moved below the signal line, indicating a bearish turn in sentiment. These indicators point to strong downward forces on WLFI, with the likelihood of continued weakness unless a significant reversal pattern develops.

Backtest Hypothesis

An example backtesting method has been developed to explore possible setups in WLFI based on these technical observations. This method focuses on identifying discrepancies between price and momentum, using RSI and MACD as main signals. A sell opportunity is flagged when the RSI moves into overbought territory but does not confirm a new high, while buying is considered only when there is clear bullish divergence and a strong recovery of RSI from oversold territory. The strategy prioritizes controlling risk by setting stop-losses below important support zones, aiming to benefit from trend changes while reducing risk during sideways or persistent bearish phases.