WLFI shows strength amid broader market sell-off: But is it a trap?

The crypto markets were deeply affected by U.S. President Donald Trump’s comments over the weekend. On Saturday, the 21st of March, Bitcoin [BTC] plunged below the $68k level after spending nearly two weeks above it.

As a result, the altcoin market also faced losses. Select altcoins showed notable relative strength against the market, and World Liberty Financial [WLFI] was one of them. In the past 24 hours, it has gained 2% in value while BTC dropped by 3.22%.

Is it time to buy WLFI?

Source: WLFI/USDT on TradingView

Maybe day traders can look into it, but not for long-term investors. The price action on the 1-day chart was severely bearish despite the past three days’ gains. The $0.095-$0.10 support, which WLFI has traded above since February, was breached on Thursday, the 19th of March.

At the time of writing, this supply zone was being retested as resistance. Like WLFI’s price action, the volume indicators were unanimously bearish. The OBV and the A/D maintained their downtrend to show that selling pressure remained prevalent.

The CMF was below -0.05 to suggest capital outflows were dominant. The demand was fleeting and simply not enough to reverse the downtrend in play.

What can WLFI traders expect next week?

Source: WLFI/USDT on TradingView

The World Liberty Financial token reached the 23.6% extension level at $0.0885 on Friday, the 20th of March. The RSI on the H4 chart recovered to neutral 50 and is poised to fall lower alongside the price.

The importance of the $0.095-$0.10 supply zone has already been highlighted. Traders can be prepared for a rejection from this area and a bearish continuation.

Bitcoin was trading at a key support and could see a price bounce back above $70k. This can give altcoins some short-term strength and can spur WLFI to climb above $0.10.

Traders should remember the bearish swing structure of the altcoin. A break of $0.107 is needed to flip the H4 structure bullishly. Until then, traders and investors can maintain a bearish bias.

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Final Summary

• World Liberty Financial token saw some short-term gains, but the longer-term trend was bearish.
• The $0.095-$0.10 is a key supply zone, and $0.107 needs to be breached to flip the price structure bullishly. 

Source: https://ambcrypto.com/wlfi-shows-strength-amid-broader-market-sell-off-but-is-it-a-trap/