WLFI Technical Indicators Signal Downtrend Despite Brief Recovery Attempts
World Liberty Financial (WLFI) has plunged into the red, trading at $0.187 after a nearly 20% drop in the past 24 hours. The sudden decline comes shortly after the token’s launch, highlighting the volatility surrounding newly issued crypto assets. Both on-chain data and chart analysis indicate that sellers are firmly controlling the market, suggesting more downside could be on the horizon.
Exchanges Flooded With WLFI
Over the last day, over $23 million in WLFI has moved to exchanges, intensifying selling pressure. Despite a brief bounce attempt, the token slipped below the $0.20 mark. Interestingly, the top 100 WLFI addresses slightly increased their holdings by 0.25%, bringing their total to 98.39 billion WLFI. However, given the token’s low distribution score of 5—with the largest holders controlling over 96% of supply—this move likely represents internal repositioning rather than bullish accumulation.
Technical Indicators Show Bearish Momentum
The Bull–Bear Power (BBP) indicator on the 1-hour chart confirms bearish dominance, with the histogram deep in red. Additionally, the Parabolic SAR has remained firmly above WLFI’s price since September 2, reinforcing the downtrend. A brief rally above the SAR line earlier in the week quickly lost momentum, indicating that sellers remain in control.
For WLFI to signal a potential recovery, reclaiming $0.20 is crucial, with $0.21 as the next checkpoint. On the downside, a break below $0.18 would confirm further bearish extension, opening the path to fresh lows.
For now, WLFI appears fragile, with exchanges seeing continued inflows and Smart Money trimming positions. Unless buying pressure strengthens, bears are likely to dominate the short-term outlook, keeping the newly launched token under significant selling pressure.
