WLFI has dropped by 1002.14% over the past month due to market fluctuations and liquidity challenges

WLFI, the digital asset in question, ended trading at $0.2098 on September 27, 2025, with its price remaining unchanged over the previous 24 hours. Despite this short-term stability, the token has suffered a steep loss of 98.96% in the past week and has plummeted by 1002.14% over the last month. The year-over-year drop is also at 1002.14%. Such significant declines highlight a broader reduction in liquidity and demand, as investors have exited their positions due to growing concerns about the token’s underlying fundamentals and governance.

This recent period of price stability stands out as an unusual break in an otherwise consistent downward trajectory across various timeframes. Traders and investors are keeping a close eye on blockchain activity and project news, but there have been no notable updates to explain the recent heavy sell-off. The lack of fresh product releases, new partnerships, or regulatory guidance has further fueled investor caution.

Technical analysis tools have not indicated a clear trend reversal. The Relative Strength Index (RSI) continues to signal oversold conditions, which could suggest a possible rebound, but past trends show that bearish momentum often persists. Likewise, the Moving Average Convergence Divergence (MACD) remains negatively divergent, supporting a pessimistic outlook. These indicators are essential for backtesting strategies and are commonly used by algorithmic traders to determine optimal entry and exit points.

Backtest Hypothesis
An outlined backtesting approach for WLFI’s recent market behavior uses multiple timeframes and integrates both RSI and MACD indicators. The method suggests entering a long position when the RSI climbs above 30 and the MACD lines move into positive territory, while a short position is taken if the RSI falls below 70 and the MACD histogram signals bearish divergence. Stop-loss and take-profit thresholds are set based on recent price swings, with adjustments for volatility. This approach aims to capture short-term reversals within a prevailing downtrend. The strategy has not yet been put into live trading and is currently being evaluated by select quantitative analysts.