- The WLFI token has plunged more than 60% from its peak to a new all-time low, signaling a strong downtrend
- However, the price chart is now forming a symmetrical triangle, a classic pattern that often precedes a major reversal
- Analysts are watching for a breakout from this pattern to confirm a potential turnaround for the WLFI price
WLFI has plunged more than 60% from its peak, bottoming near $0.1680 and signaling continual sell-off pressure.
In a bid to stem the decline, World Liberty Financial burned 47 million WLFI tokens, but the effort hasn’t halted the falling price or restored market confidence.
Early investors are engaged in heavy selling, as evidenced by high-volume transactions. One whale moved 53 million WLFI to the Binance exchange, which points to rapid profit-taking.
Since it was launched, WLFI has seen enormous activity, with over $4.4 billion in trading volume within its first 24 hours. The token debuted around $0.30-$0.40, but shortly afterward, it quickly lost a good chunk of its value.
The token is closely tied to former President Trump and his sons, who retain a locked 25% stake (give or take). Their estimated holdings are still worth around $5 billion on paper, even amid the fall.
On top of everything, notable issues have emerged after the launch, including user reports of hacks and worries about potential conflicts of interest and political profiteering.
Signs of a potential price rebound
Despite all the doom and gloom regarding the WLFI token at the moment, there are some indications that more positive happenings are on the horizon. For instance, a chart from TradingView, shared by Daan Crypto on X, shows a symmetrical triangle pattern, which is a well-known continuation pattern in technical analysis.
This pattern is characterized by two converging trendlines – a downward-sloping resistance line (formed by lower highs) and an upward-sloping support line (formed by higher lows). The price action compresses as it approaches the apex of the triangle, indicating a period of consolidation.
According to Daan, the price is getting ‘squeezed’ into a tight ‘triangle’ shape. When this happens on a chart, it usually means a big move is coming very soon, either up or down, because the price has less and less room to move.
Related: Here’s How the Trump-Linked WLFI is Trying to Stop its Post-Launch Price Crash
Then, per Mitrade’s analysis, there are emerging technical signs that may hint at a turnaround, from supply-side shifts to on-chain activity patterns.
While the top 100 addresses have offloaded approximately 216.5 million WLFI, “smart money” addresses snapped up more than 102.8 million WLFI. This difference shows that some people who were just looking for a quick profit are selling, while other, smarter investors are buying and holding for the long run.
Basically, the mixed behavior where whales are selling while smart money accumulates can set the stage for a potential bounce, especially if accumulation persists.
Still, analyses comparing WLFI with tokens like PENGU and PUMP suggest trend reversals may take months, implying that even if charts show some short-term buying, real reversals may take time.
Related: Jump Crypto, Whale, and Burn Drive $32M in WLFI Transfers
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
