WLFI shows early signs of accumulation after capitulation | Credit: Hameem Sarwar
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Key Takeaways
WLFI’s price has decoupled from Bitcoin’s weakness, rallying 12% in 24 hours.
Despite the bounce, WLFI remains inside a descending channel, with heavy resistance.
Data shows strong holder accumulation near record levels amid rising bullish momentum.
WLFI, native to the World Liberty Financial project, has reversed the trend from when Bitcoin (BTC) dropped below $70,000.
Over the last 24 hours, the WLFI price rally has added 12% while trading around $0.11.
Live trackers show the WLFI token with over $200 million in 24-hour trading volume. Also, the surge has helped the cryptocurrency reclaim a $3 billion market cap.
This suggests that the rebound may not be a fakeout. But why has this happened, and what could be next for the altcoin?
Why Is WLFI Token Rising?
But the why matters. Two forces are colliding:
First, a February 18 catalyst window is forming around the Mar-a-Lago “World Liberty Forum” narrative (front-running behavior, not confirmation).
In this kind of market, “event gravity” can temporarily outweigh fundamentals, as traders position for headline risk rather than valuation.
Second, the Washington overhang is not theoretical.
Recently, CCN reported a House probe tied to a reported $500 million UAE-linked stake and requests for records related to ownership and payment trails, as well as WLFI’s stablecoin USD1, with lawmakers framing it as a conflict-of-interest or national security concern.
According to CCN’s findings, these two appear to be the push and pull. So, how has this affected the price?
Bullish Crossover, Higher Values
Looking at the 4-hour chart, the altcoin is still trading within a descending channel. However, the WLFI price rally has pushed the token to the upper trendline of the channel.
From a support-and-resistance standpoint, the green zone around $0.12 has served as a short-term demand area, helping stabilize WLFI’s price.
However, overhead resistance in the $0.14 region remains very strong, aligning with both horizontal resistance and the upper channel trendline.
As such, the token would need a notable break and hold above $0.14 to weaken the bearish structure.
Furthermore, momentum indicators are showing early signs of improvement.
At the time of writing, the Moving Average Convergence Divergence (MACD) has printed a bullish crossover, suggesting short-term momentum is shifting in favor of buyers.
At the same time, the Chaikin Money Flow (CMF) has broken out to the upside and moved into positive territory, indicating improved reduced selling pressure.
That said, the broader context still favors caution. Until WLFI breaks out of the descending channel and reclaims former resistance as support, the current move should be treated as a counter-trend bounce.
If momentum continues to build and volume follows, a push toward the upper channel could materialize. In that case, the WLFI price rally could extend toward $0.16.
HODLing Over Distribution
From an on-chain perspective, the WLFI’s holder accumulation ratio has risen near a new high of 75%.
This development has created a clear bullish divergence between on-chain behavior and market price.
To be clear, the rise in the metric indicates that a growing share of holders are accumulating rather than distributing.
Historically, this kind of divergence tends to appear closer to local bottoms than to local tops.
At the same time,WLFI’s price action still shows minor short-term weakness. However, the steady increase in accumulation implies that sell-side liquidity is being absorbed in the background.
Interestingly, data from Arkham Intelligence also confirmed this. Earlier today, someone (a new wallet) used $10 million in USCD to purchase WLFI.
Therefore, if accumulation continues while the price stabilizes, it increases the probability of a supply squeeze-driven rebound, especially once technical resistance levels are reclaimed.
WLFI Holder Accumulation Ratio | Credit: Glassnode
WLFI Price Prediction: 60% Jump Possible
On the daily chart, WLFI’s price recently bounced from the lower boundary of a descending channel and is holding above the local support zone near the prior lows. T
This kind of reaction suggests sellers are losing momentum, especially after multiple failed attempts to push it lower.
In line with the 4-hour structure, the Money Flow Index (MFI) has rebounded from oversold territory.
Historically, when MFI recovers from oversold levels while price holds support, it precedes short-term relief or a broader consolidation phase.
Structurally, the reclaim of the channel base opens the door for a move toward the 0.236 to 0.382 Fibonacci retracement zone, which aligns with the highlighted mid-term target area.
A sustained push above the Supertrend resistance would further confirm a trend reversal and increase the probability of continuation toward higher resistance levels.
Should that be the case, the token might rise to $0.18, representing a 60% rally from its current point.
When combined with the earlier rise in holder accumulation, this setup suggests WLFI’s price is transitioning from capitulation into early accumulation.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
