WLFI shows early signs of recovery but weak inflows and a bearish crossover limit upside | Credit: Hameem Sarwar
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Key Takeaways
WLFI bounced 30% to $0.24 over the weekend, but has since slipped to $0.21.
Despite that, it remains stuck in a descending channel, with a bearish crossover.
Trading volume has dropped from $5B at launch to $1.5B, signaling fading hype.
Over the weekend, the World Liberty Financial (WLFI) defied the recent controversy and rose 30% from its record low. At one point, the WLFI token climbed to $0.24.
However, as of this writing, it has retraced to $0.21, representing a 10% 24-hour decline. Despite the recent see-saw movement, it does not appear that WLFI’s price is ready for a sustained uptrend. Here is why.
World Liberty Financial Struggles After Weekend Rally
WLFI’s price crashed to $0.16 a few days after the token unlock. The decline wiped out over $6 billion in investor holdings.
On Sunday, the token jumped, with signs that it could trade higher. However, eventually, it turned out to be a fakeout, with the altcoin now down from yesterday’s peak.
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On the 1-hour chart, the WLFI token seems stuck in a descending channel. However, the same chart appears to show it printing a buy signal.
But it does not seem like the signal will materialize yet. Two reasons for this are the Chaikin Money Flow (CMF) and the Moving Average Convergence Divergence (MACD).
At press time, the MACD has formed a bearish crossover, indicating that WLFI’s price might struggle to break above resistance. The CMF, on the other hand, is below the zero signal line.
If this remains the same, the World Liberty Financial crypto might struggle to break the overhead resistance at $0.24.
Another factor reinforcing this view is trading volume. At the peak of the WLFI token launch, its volume soared above $5 billion. At press time, however, that figure has dropped to $1.5 billion.
Such a decline suggests that buying frenzy is cooling off as speculative traders take profits and activity begins to normalize.
For the WLFI token, this cooling volume could mean slower upward movement in the short term, or extended consolidation.
WLFI Price Outlook: No Breakout Here
Looking at the technical perspective again, the 4-hour chart shows WLFI locked in a clear downtrend, with the token still trading below a stubborn resistance line.
If this pattern holds, WLFI risks sliding back toward $0.16, revisiting its recent lows.
However, the outlook could shift if buying pressure returns or a bullish divergence forms. In that scenario, WLFI could break above the $0.26 resistance.
A confirmed breakout at that level may open the door to the next target at $0.32, signaling the start of a potential recovery phase.
Past hype-driven launches, such as memecoins and narrative tokens tied to major events, have shown a similar pattern: explosive volume at launch, followed by pullbacks, then a make-or-break test at resistance.
For WLFI, whether history repeats will depend on how much conviction buyers show as initial hype fades.
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.
