WLFI has crashed to a new all-time low after World Liberty Financial opened a vote to lock 62.28 billion tokens under a multi-year vesting schedule that would keep most of the supply off the market for at least two more years.
A 250% spike in daily trading volume alongside the price drop confirms heavy distribution by existing holders rushing to exit.
On-chain capitulation signals historically mark local bottoms, suggesting WLFI may be closer to a rebound than to another leg down.
WLFI, the governance token powering World Liberty Financial, has plunged to a fresh all-time low today, extending a year-to-date drawdown that has wiped out more than 60% of its value.
As of this writing, the token trades at $0.062, down 15% over the past 24 hours.
This double-digit decline and the consequential dip to an all-time low follow the release of a proposal to place 62.28 billion locked WLFI tokens under a structured multi-year vesting schedule, keeping the bulk of the supply off the market for at least two more years.
Interestingly, beneath the sell-off, on-chain and technical signals are flashing patterns that have historically marked local bottoms.
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In a governance post published yesterday, World Liberty Financial opened a seven-day on-chain vote to convert 62,282,252,205 WLFI tokens into defined vesting schedules.
The plan splits the locked supply into two cohorts.
Early supporters holding 17.04 billion WLFI face the lighter terms.
Their tokens move to a two-year cliff followed by a two-year linear vest.
They receive full distribution by year four, with no burn attached.
Founders, team members, advisors, and partners holding 45.24 billion WLFI are subject to stricter terms.
A 10% mandatory burn, followed by a two-year cliff and a three-year linear vest, with full distribution stretching to year five.
According to the proposal, WLFI holders who refuse the new terms will have their WLFI locked indefinitely, while retaining governance voting rights.
For the proposal to pass, it requires a 1-billion-WLFI quorum and a simple majority.
As of this writing, on-chain results show 6.4 billion WLFI voting YES (99.95%) against just 3.1 million WLFI voting NO.
WLFI Sellers In Control
The reaction to this proposal has been swift. Over the past day, WLFI has dropped by 14%, while daily trading volume has increased by over 250%, creating a negative divergence.
The Parabolic SAR is used to identify potential trend direction and reversal points.
When its dots are plotted beneath an asset’s price, the market is considered to be in an uptrend.
It also signals bullish momentum and suggests that the asset’s rally could extend further if buying interest persists.
On the other hand, when the dots flip above the price — as is currently the case with WLFI — the market is in a confirmed downtrend, and the dots act as a dynamic resistance level that sellers defend on every attempted rally.
This is the structure WLFI has been trapped in since March 19, when the indicator last flipped bearish.
For more than six weeks, every bounce has stalled beneath the SAR dots, dragging the token’s value lower.
There Is A Catch
Despite the bearish outlook, some indicators suggest a short-term rebound is likely.
On the daily chart, WLFI’s Relative Strength Index (RSI) is at 17.04, indicating the altcoin is oversold and poised for an uptrend.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100.
Values above 70 suggest the asset is overbought and due for a price decline, while values below 30 indicate the asset is oversold and due for a rebound.
At 17.04, WLFI’s RSI indicates the token is deeply oversold, suggesting a market where selling pressure has reached an extreme.
In this scenario, seller exhaustion is common and is often followed by an uptick in demand for the asset.
This, if it happens, may trigger an upward rebound in WLFI’s price.
On-Chain Data Points to a Price Bottom
An assessment of WLFI’s Net Unrealized Profit/Loss (NUPL) metric suggests a price bottom may be near, potentially triggering a near-term upward reversal in the token’s price.
According to Glassnode, WLFI’s Net Unrealized Profit/Loss (NUPL), which measures the aggregate unrealized profit or loss held across all market participants relative to market capitalization, has slipped to an all-time low of -2.62.
When NUPL turns negative, it means the average coin holder is currently sitting at an unrealized loss on their position, which could potentially worsen the downward pressure on the token’s price if they sell.
However, historically, capitulations like this are observed near market bottoms and often signal a bullish reversal.
This is because at this stage, investors most likely to panic-sell (short-term holders) have already exited, reducing the pool of remaining sellers and thereby creating conditions that may strengthen market sentiment.
Where Next for WLFI?
At press time, WLFI trades near its all-time low of $0.062. If bearish sentiment continues to dominate, the token risks price discovery below its current value and reaching new lows.
On the other hand, with the market nearing capitulation and sellers becoming exhausted, a rebound is possible.
In this case, WLFI may rally past the $0.0782 Parabolic SAR resistance and surge toward the $0.1274 resistance.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
