- On Friday, World Liberty Financial (WLFI) plunged by over 4% as the cryptocurrency market faces a correction, with BTC dropping below $70,000 once again
- In the last 24 hours, the WLFI has witnessed a liquidation of $564,944 worth of positions
- The constant drop in the cryptocurrency was seen after around 135 million tokens with a cumulative value of around $12.5 million were unlocked from the project treasury and deposited into Binance
Trump family-linked DeFi project, World Liberty Financial (WLFI), plunged over 4% on Friday, following the downward momentum in the crypto market, with its correlation with the biggest cryptocurrency, Bitcoin.
On March 20, WLFI dropped by 2.75% on a daily chart with a market capitalization of $2.52 billion, according to CoinMarketCap. The trading volume jumped by 31.78%, soaring to $106 million in the same time frame. At the time of writing, the total circulating supply of tokens revolves around 100 billion WLFI, according to CoinMarketCap.
WLFI Faces Constant Selling Pressure After Treasury Unlocked 135 Million Tokens
According to Coinglass, in the last 24 hours, the WLFI has witnessed a liquidation of $564,944 worth of positions. This includes the long position of $518,828 and $46,115 in the short position.
Apart from the recent downward momentum in the crypto market, one of the major reasons behind the drop comes from a large treasury unlock and transfer of WLFI tokens.
Approximately 135 million WLFI tokens worth around $12.5 million were unlocked from the project treasury and deposited to Binance. This development was reported through on-chain tracking, and it has introduced fresh sell-side pressure because markets see it as increased supply hitting the exchange.
This development has created downward momentum as traders react to the possibility of more tokens being sold in the open market when there are positive developments like the AgentPay SDK launch for AI payments.
In addition to this large transfer, ongoing distributions from team-linked wallets have persisted, adding to the supply accumulated earlier in the year. This pattern has damaged some investors’ confidence.
These factors, including token unlocks, exchange deposits, and sustained distributions, have outperformed recent major developments on the project, which led to the current weakness in the token price.
In the last 7 days, WLFI dropped by over 13%. On the Binance WLFI/USDT chart, which is the main trading pair for this token, the technical indicator highlights a bearish pattern that gives details of the recent price drop.
The Relative Strength Index (RSI) on the 14-day average is revolving around 31.37 to 35.43, which revolves near oversold territory but fails to generate a clear reversal signal. This shows that persistent downward momentum continues without immediate signs of exhaustion.
The Moving Average Convergence Divergence indicator is sitting at standard 12 and 26 periods, which remain deeply negative at -0.0044 to -0.0047 with a continued sell crossover confirming accelerating bearish divergence.
Short-term moving averages are mentioning the downward pressure with the 10-period exponential moving average at $0.0987 to $0.0993, trading well above the current price.
According to the chart, the price movement in the cryptocurrency is showing a clear breakdown below major support around $0.095 with no higher lows forming on the 4-hour or daily timeframe. The Stochastic indicator with a percentage K reading of approximately 11 to 12 further validates slowing momentum.
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Source: https://www.cryptonewsz.com/wlfi-price-drop-treasury-135m-tokens-binance/
