World Liberty Financial [WLFI] formed a top around the $0.18 supply zone in late December. Since then, it has faced steady distribution, and the price was back at the $0.106 long-term support.
The World Liberty Forum convened financial and crypto leadership at Mar-a-Lago. It was hosted by Eric Trump and Donald Trump Jr., and focused on tokenization strategy and capital-market integration.
Rapper Nicki Minaj was a featured speaker at the event, where WLFI announced plans to tokenize revenue from Maldives resort loans, according to reports.
More recently, the USD1 came under a “coordinated attack“, with the stablecoin briefly slipping below its $1 peg. The company reassured users that the depeg attempt failed and USD1 was trading at par once more.
Bearish WLFI trend set to continue
Source: WLFI/USDT on TradingView
The Congressional investigation and forced market-wide selling in the first week of February saw WLFI drop below a three-month range. This range extended from $0.106 to $0.175. At the time of writing, the lows were under siege once again.
The range lows were defended in recent weeks, and a bounce to $0.13 occurred. The bulls had no follow-up to this relief rally. The price action, volume trends, and the OBV showed that the buyers had exhausted themselves over the past week.
The bounce to $0.13 saw the RSI retest neutral 50 and face rejection. This underscored the bearish momentum prevalent on the 1-day timeframe.
The $0.966 local lows are likely to be tested in the coming days.
Short-term WLFI prediction
Source: WLFI/USDT on TradingView
The short-term range lows just under $0.1 were likely to be tested soon. The $0.96-$0.99 was the nearby local demand zone that beckoned prices closer.
Source: CoinGlass
The long liquidations under the current market price agreed that the next move was likely to be bearish. However, the liquidation heatmap also highlighted the dense cluster of short liquidations at $0.13.
If WLFI bulls defend $0.96 and the Bitcoin [BTC] bearish momentum sees temporary respite, traders need to be prepared for a short squeeze to, or just beyond, $0.13.
Final Summary
- The World Liberty Financial token was trading within a 3-month range.
- Analysis of the lower timeframe trends showed that $0.96 was the immediate price target.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/wlfis-0-106-under-siege-should-traders-brace-for-more-losses/
