- WLFI drops 18.88%, but experts see signs of recovery ahead.
- Major whale sells off, but smart money shows steady interest.
- Trump family holds significant stake, despite ongoing market challenges.
The WLFI token has experienced a dramatic plunge, losing more than 18.88% in one year of its value from its peak, with the current price hovering around $0.186 as per CoinMarketCap.
This sharp decline has triggered a continuous sell-off, particularly from early investors eager to cut their losses. Efforts by World Liberty Financial to burn 47 million WLFI tokens have failed to soothe the market, which is still spiraling downwards.
A stream of large-volume buyouts points to the intensity of the sell-off, and one whale transferred an incredible 53M WLFI to the Binance exchange, indicating a selling panic.
Massive trading in WLFI occurred when it was initially launched, with over 4.4 billion being traded within 24 hours. However, the price of the token soon plummeted after it was initially pegged at $0.30-$0.40, which caused alarm amongst investors.
To make the token problems worse, hacks have been reported, and its relationship with former President Trump and his sons, who have a locked 25% stake, has raised concerns over possible conflicts of interest. The Trump organization continues to hold the equivalent of $5 billion on paper, even in the midst of the current price crash.
Also Read: Justin Sun Accuses World Liberty Financial of Freezing Tokens Amid Crash!
Technical Indicators Signal a Potential Turnaround for WLFI
While the current market conditions paint a bleak picture, some experts believe that a price reversal could be on the horizon. According to a chart shared by Daan Crypto on X, WLFI is forming a symmetrical triangle pattern.
This technical structure indicates that the token is undergoing a consolidation phase. As the price narrows towards the top of the triangle, most traders believe that this usually causes a huge price shift, either up or down.
On-chain activity is also an indicator of a possible rebound. Although top addresses have been selling 216.5 million WLFI tokens, the addresses with smart money have continued to accumulate the token, buying more than 102.8 million WLFI.
This sharp divergence suggests that some investors are seeking to make a quick buck, while others are long-term oriented. The buying trend will generate the basis of a price recovery, provided the trend remains in place.
Nevertheless, even with the emerging evidence on a possible reversal, the analysts warn that the turnaround may be slow in WLFI. Comparisons with other tokens like PENGU and PUMP suggest that trend reversals in similar markets took months. Therefore, while short-term gains may be possible, a full recovery might still be a distant prospect.
Also Read: Cardano (ADA) Set for Massive Surge: Will $0.80 Support Hold or Break?
