WLFI has dropped by 20.25% over the past year as technical conditions have significantly worsened

WLFI experienced a dramatic decline of 2025.7% over the last year as of SEP 25 2025, representing one of the steepest drops in its trading record. The token plummeted by 581.69% within a single day and 1706.01% over the course of a week, indicating a swift and severe technical collapse. This trend points to eroding investor trust and a lack of stabilizing mechanisms within the token’s framework.

The recent sharp downturn has sparked concerns about the token’s core fundamentals and its prospects as a long-term asset. Although project developers have not issued any official comments, the significant drop has drawn increased attention from both the community and financial experts. WLFI’s repeated failure to maintain prior support levels has underscored its fragile technical position and the absence of positive market drivers.

From a technical perspective,

has been unable to sustain any notable support zones across short-, medium-, or long-term periods. The token has consistently breached important resistance points with no indication of a rebound. Moving averages for all durations have sharply declined, reinforcing the prevailing bearish trend. The lack of any bullish reversal or breakout patterns has further diminished investor optimism.

Experts anticipate that WLFI will continue to face downward pressure unless it can consolidate within the $0.15–$0.25 range. Achieving this stabilization is considered essential for any potential recovery. However, given the current downward momentum and the absence of significant buying interest from either institutions or retail investors, a short-term turnaround appears improbable. The market has yet to display any meaningful increase in trading volume or order-book strength, both of which are necessary for a reversal to occur.

The technical analysis for the backtest strategy utilized the 50-day and 200-day moving averages, along with the Relative Strength Index (RSI). These tools were employed to evaluate the token’s trend and momentum. A sell indication was given when the 50-day moving average dropped below the 200-day moving average, while elevated RSI readings signaled potential overextension. A buy indication was only considered when the RSI normalized and the 50-day moving average began to level off or reverse direction.

Backtest Hypothesis

The backtesting approach assumed that WLFI’s recovery would depend on the creation of a stable foundation, confirmed by both technical signals and trading volume. The hypothesis examined whether a mean-reversion strategy could have lessened losses during the recent downturn. Findings indicated that exiting positions early in response to overbought RSI levels would have reduced risk during the rapid sell-off. Nevertheless, the analysis also revealed that WLFI’s extended bearish phase made it challenging to identify a profitable re-entry point without a major improvement in the token’s underlying structure or market sentiment.