Will the WLFI Price Bounce After Positive News? | Credit: Hameem Sarwar
Share
Key Takeaways
World Liberty Financial (WLFI) began a token reallocation plan.
The WLFI price trades below the $0.150 horizontal resistance area.
Can the WLFI price break out on the back of positive news?
World Liberty Financial (WLFI) took the spotlight after positive news regarding a major token reallocation plan aimed at helping users affected by early wallet compromises.
The update led to a shift in WLFI’s price action, which has been battling to break through a key resistance area.
As bullish momentum builds across multiple timeframes, traders are closely watching to see whether WLFI can finally push higher.
With this context in mind, let’s examine the charts to determine if a breakout is likely to occur.
WLFI Begins Reallocation
Earlier today, the WLFI team announced that it will begin reallocating funds to users whose wallets were compromised.
Before WLFI’s launch, a small number of user wallets were compromised through phishing attacks or had their seed phrases exposed.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
The team clarified that this was not a smart contract or platform issue, but rather that the attackers had accessed wallets through third-party security lapses.
Users who have completed their Know-Your-Customer (KYC) verification will see their funds returned to new wallets, while those who have not will still have their wallets remain frozen.
On-chain analyst Emmett Gallic noted that the team executed an emergency function to burn $22 million worth of WLFI tokens from compromised addresses and reallocated them to a recovery address.
WLFI Price Breaks Out
The WLFI price has fallen below a diagonal resistance trend line since its launch in August.
Its decline culminated with a new all-time low of $0.07 on Oct. 10, but the price bounced, creating a long lower wick.
Since then, the price of WLFI has formed several higher lows, accompanied by bullish divergences (orange) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).
In November, the WLFI price finally broke out from its diagonal resistance trend line, briefly hitting a high of $0.17 before falling.
While the price still trades within its channel, the RSI has broken out from its diagonal resistance. Such a breakout often causes the price to follow suit.
If that happens, WLFI will likely clear the channel and the $0.15 resistance area, paving the way for new highs.
WLFI Token Recovery And Bounce
Overall, WLFI’s recovery efforts are a step in the right direction for improving relations with the community.
The technical analysis is also improving, since the WLFI price aims for a breakout above its channel.
If WLFI clears the $0.15 area, it could quickly surge to the next resistance at $0.20.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
