The World Liberty Financial (WLFI) token is exhibiting clear signs of weakness, with its price declining for three consecutive sessions and repeatedly failing to break above the 20-day Exponential Moving Average (EMA), which sits between $0.115 and $0.118. This technical rejection is compounded by significant on-chain activity, raising concerns about further downside.
Recent whale transfers have amplified bearish sentiment. According to on-chain analytics platform Lookonchain, a wallet address (0x5041) received 26.6 million WLFI tokens (worth approximately $3.2 million) from a World Liberty Financial-linked wallet. Shortly after, the same wallet deposited 6 million WLFI tokens (valued around $664,000) into the Binance exchange. Such large deposits to exchanges are often interpreted as preparation for selling, increasing short-term downside risk and reinforcing a distribution narrative.
Technically, WLFI remains locked in a short-term downtrend, trading around the $0.107–$0.110 range. The token has been forming lower highs, confirming seller control. Immediate support is seen near the psychologically important $0.10 level. A break below this could see the price slide toward $0.095 or even $0.090. For any recovery to gain credibility, WLFI must decisively reclaim and sustain levels above $0.118.
The bearish outlook is supported by momentum indicators. The Relative Strength Index (RSI) is trading below the neutral 50 level, indicating a lack of strong buyer control, while not yet being deeply oversold, leaving room for further decline.
This pressure follows broader challenges for the project. WLFI formed a top around $0.18 in late December and has faced steady distribution since. The token was also impacted by a Congressional investigation and forced market-wide selling in early February, which saw it break below a three-month trading range of $0.106 to $0.175. Although the range lows were defended recently, leading to a bounce to $0.13, buyers showed no follow-through, and the RSI faced rejection at the 50 level on that rally.
Analysts point to the $0.966 local lows as the next likely target, with a dense cluster of short liquidations noted at $0.13, which could trigger a short squeeze if Bitcoin's bearish momentum temporarily abates and WLFI bulls successfully defend the $0.96 support level.
