Home / Analysis / Crypto / Technical Analysis / WLFI Token Recovers 18% — Defamation Lawsuit Against Justin Sun Could Add Pressure to the Heavy Lifting
WLFI has rebounded from its lows, supported by rising network activity, but remains in a broader downtrend.
The dispute with Justin Sun adds uncertainty, though the project is positioning itself as compliant and regulation-friendly.
A break above $0.11 is needed for a stronger recovery, while failure could send the price back toward recent lows.
The WLFI token, native to the World Liberty Financial project, has staged a modest recovery today.
As a result of the move, the altcoin has now risen 18% from its all-time low, even as a looming lawsuit involving Justin Sun threatens to complicate its path forward.
What’s next for the price?
World Liberty Financial Sends Sun a Bigger Message
World Liberty Financial has accused crypto entrepreneur Justin Sun of orchestrating a coordinated smear campaign after his entity, Blue Anthem, allegedly engaged in prohibited transactions involving WLFI tokens.
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The company claims it froze Sun-linked tokens in line with its disclosed policies, prompting Sun to publicly label the project a “scam” and accuse it of misconduct, allegations WLFI strongly denies.
“Sun’s claims are demonstrably false. The authorized freeze function Sun complains about was disclosed in our Terms of Sale and his own agreements. The governance process is transparent and community-driven. Yet he weaponized his platform to spread lies to more than 4 million followers,” It stated.
Besides that, WLFI further alleges Sun amplified these claims through paid influencers and bots, while criticizing major media outlets for reporting his accusations despite prior coverage of fraud allegations against him.
The firm says it is now pursuing legal action for defamation, framing the dispute as a broader issue of trust and integrity in decentralized finance.
Furthermore, the project is positioning itself as:
Compliant.
Western-focused.
And aligned with regulatory expectations.
In a market increasingly shaped by policy and oversight, that distinction matters. But does that mean that the WLFI token will experience an extended rally?
Higher Value, Rising Network Activity
Well, according to on-chain data from Santiment, the WLFI’s price-DAA divergence, which is useful for spotting shifts in underlying network activity relative to market value, is positive.
Earlier in the chart, the divergence was red, meaning the price was outperforming activity.
That usually signals weakness under the surface, and it lined up with the subsequent downtrend.
Recently, the divergence flipped strongly green and has stayed elevated for a while.
This suggests network activity started outperforming price, which is typically an early accumulation signal.
On the contrary, if divergence continues to weaken while price rises, it could mean the move is more of a short-term bounce rather than a sustained trend reversal.
WLFI Price Prediction: Recovery-Bound
On the technical side, WLFI’s price is still in a clear downtrend. However, it is showing early signs of exhaustion near its support level.
Notably, the price has been consistently making lower highs and is currently respecting a descending resistance line.
It recently tapped the lows around $0.052 and is attempting a small bounce from that area, which is acting as short-term support.
The key upside level is the $0.11 zone at the 0.236 Fibonacci level.
Meanwhile, momentum is improving slightly, with the RSI bouncing from oversold territory, but it is still weak overall.
This looks more like an early bounce within a downtrend unless resistance is reclaimed.
That area aligns with the trendline resistance, so it is a major decision point.
As long as the WLFI token price stays below it, the broader structure remains bearish.
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.
