A U.S House investigation is probing Trump-associated World Liberty Financial [WLFI] after reports surfaced of links with foreign sovereign capital. It was reported that an Abu Dhabi-linked entity secretly made a deal to buy a 49% stake for $500 million in the cryptocurrency venture, shortly before President Trump’s inauguration.
California Rep. Ro Khanna launched an investigation into the $500 million investment and sent a letter to World Liberty Financial, asking for “information and documents that will help Congress better understand the relationship between the UAE, the PRC, and the White House.”
For his part, President Donald Trump has denied any knowledge of the reported deal.
Needless to say, there are not good optics for the company, which has till 01 March to deliver the requested documents. On the price front, WLFI is already under severe bearish pressure.
WLFI under intense scrutiny
Bitcoin [BTC] and the rest of the crypto market recorded double-digit percentage losses over the past week, and WLFI was forced below the lows of a 3-month range. WLFI’s $50 million Bitcoin sale reflected a lack of conviction in the market, compounded by BTC’s spot ETF outflows.
World Liberty Financial also deposited 235 million WLFI to Binance during the most recent downtrend, highlighting seller dominance.
Source: WLFI/USDT on TradingView
The range that was recently lost extended from $0.106 to $0.176. The CMF has been below -0.05 since mid-January to reflect sizeable sell pressure, and the Awesome Oscillator highlighted extreme bearish momentum.
The $0.10-$0.115 former demand zone has now flipped to a supply zone too. Therefore, any price bounce into this area is likely to see a bearish price reaction.
Traders’ call to action – Wait to sell the bounce
The chaos during the 10/10 market crash saw WLFI prices drop to $0.715 on Binance. On Coinbase, the low was a less extreme $0.086. Long wicks like these tend to get filled before the market can move in the opposite direction.
Therefore, in the short-term, traders can watch out for a bounce. A retest of the $0.10-$0.115 former support zone is likely. This move is likely to be followed by a drop towards $0.086.
Final Thoughts
- World Liberty Financial is facing a Congressional investigation after reports of a $500 million deal with an Abu-Dhabi-linked entity.
- The $0.0715 price target is too extreme for now, but it can come into focus if Bitcoin sinks below $55k in the coming weeks.
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/wlfi-price-prediction-identifying-short-term-targets-as-sell-pressure-mounts/
