WLFI has dropped by 1468.95% over the past year as a result of a sustained downward trend

On September 23, 2025, WLFI experienced a steep decline of 612.63% in just 24 hours, dropping to $0.1986. Over the course of 7 days, the token fell by 953.68%, and over both the past month and year, it has plummeted by 1468.95%.

WLFI has undergone a significant and ongoing decrease in value across various periods, with the most pronounced losses occurring in the daily and weekly timeframes. The asset’s overall outlook remains strongly negative, as the percentage drop over one year matches that of the past month, indicating a persistent downward trend.

Technical analysis points to further declines, as major support levels have been breached multiple times and there is no evidence of a reversal pattern. Both traders and investors are noticing weak trading volumes during attempted recoveries, which further highlights the fragile state of WLFI’s market.

Backtest Hypothesis

The suggested backtesting method examines how the asset performs under specific historical price conditions. This approach utilizes moving averages and the RSI as primary indicators to pinpoint possible buy and sell opportunities. The strategy is designed to take advantage of short-term rebounds within the broader downward movement, capitalizing on the volatility observed over the 24-hour and 7-day intervals.

According to the backtest plan, a position is initiated when the RSI drops below 30, indicating a potential oversold situation, while the 50-period moving average moves above the 200-period average, hinting at a short-term reversal. A sell is triggered if the RSI exceeds 70 or if the 50-period moving average falls below the 200-period average, signaling a return to the prevailing downtrend.

This approach is meant to be tested on historical WLFI data to evaluate its real-world effectiveness. Given the asset’s ongoing losses, the backtest will also assess how well the strategy limits downside risk and captures small gains during brief recoveries. Key performance indicators will include overall return, largest drawdown, and the win/loss ratio, offering a thorough assessment of the strategy’s potential.