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- WLFI remains under bearish pressure after failing to sustain a recovery rally.
- Technical indicators suggest support near $0.10 could be tested soon.
- A short squeeze toward $0.13 is possible if broader crypto sentiment improves.
World Liberty Financial’s WLFI token is showing signs of renewed weakness after months of steady distribution, with price action now hovering near a key long-term support zone. The token peaked around $0.18 in late December before entering a sustained downtrend, and market structure suggests bearish momentum still dominates.
The recent mix of political attention, market stress, and technical deterioration has left traders questioning whether WLFI can stabilize or if further downside is imminent.
Political Spotlight and Tokenization Push
The project recently drew attention at the World Liberty Forum held at Mar-a-Lago, hosted by Eric Trump and Donald Trump Jr.. The event focused on tokenization and capital-market integration, signaling the project’s ambition to bridge traditional finance and blockchain infrastructure.
Reports from the gathering indicated WLFI plans to tokenize revenue tied to resort financing in the Maldives. The conference also featured a surprise appearance by Nicki Minaj, adding cultural visibility to the initiative.
Despite the publicity, market sentiment has remained cautious, especially after WLFI’s associated stablecoin briefly lost its peg before recovering.
Technical Indicators Signal Continued Downtrend
From a chart perspective, WLFI’s broader range between roughly $0.106 and $0.175 has already broken down following heavy selling earlier in February. While buyers managed a short-lived rebound toward $0.13, momentum indicators suggest the move lacked conviction.
Volume data and on-balance volume trends point to weakening demand, while the RSI’s rejection at neutral territory confirms sellers still control the market. If current conditions persist, the token may retest nearby demand zones just below the psychological $0.10 level.
Short-term liquidation data reinforces this outlook, showing clusters of long positions vulnerable below current prices.
Could a Short Squeeze Offer Relief?
Although the outlook leans bearish, traders are watching one potential upside trigger. A dense pocket of short liquidations sits near $0.13, meaning any bullish catalyst—such as stabilization in Bitcoin—could fuel a quick squeeze toward that level.
Also Read: Trump Family’s World Liberty Financial Burns 47 Million Tokens as WLFI Price Plummets
For now, however, WLFI’s structure suggests caution. Without sustained buying pressure or improving broader market sentiment, the token appears more likely to test support before mounting any meaningful recovery.
WLFI’s mix of political visibility, ambitious tokenization plans, and fragile technical structure has created a high-stakes environment for traders. While a temporary rebound remains possible, the prevailing signals suggest the path of least resistance remains downward unless demand returns decisively.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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