Key Insights:
- WLFI token price remains stable at $0.1600, despite heavy selling by whales and a slowdown in USD1 stablecoin growth.
- The USD1 stablecoin supply has dropped by over 8% in the past month, signaling weakening momentum in the World Liberty network.
- WLFI price shows signs of a potential bullish reversal, with an inverse head-and-shoulders pattern forming on the 8-hour chart.
The price of World Liberty Financial’s WLFI token has remained relatively stable at $0.1600, holding steady despite recent pressure from whale dumping and a deceleration in the growth of the USD1 stablecoin. WLFI’s current price is about 50% above its lowest point this month, but the cryptocurrency faces some market challenges as it grapples with slower expansion of its stablecoin supply.
Over the past few weeks, whale activity has been a key factor influencing the market. Significant sell-offs from these large holders have exerted downward pressure on the token. Data shows that the number of WLFI tokens held by whales has decreased considerably, from 9.36 million on November 25 to 6.14 million as of today. This reduction in holdings indicates a bearish sentiment among major investors.
Stablecoin Growth Slows
The USD1 stablecoin, a critical component of the World Liberty Financial ecosystem, has also faced setbacks. The circulating supply of USD1 stablecoins has dropped by 8.2% in the past month, falling to $2.7 billion. The decline in USD1’s growth has been faster than other stablecoins, with a notable 21% drop in the number of USD1 holders over the same period. Additionally, the adjusted transaction volume has decreased by nearly 50%, further highlighting the slowdown.
Despite the bearish pressure from whales and the stablecoin growth slowdown, WLFI’s price chart shows signs of a potential bullish reversal. On the 8-hour chart, an inverse head-and-shoulders pattern has formed, a commonly recognized technical indicator of a price reversal. Furthermore, WLFI has moved above its 50-period Exponential Moving Average, signaling that a price rally could be on the horizon.
Technical Indicators Suggest Possible Upside
WLFI’s recent price action suggests that there could be more upside potential. If the current trend continues, the next key resistance level to watch for WLFI will be at $0.2035, which corresponds to the 50% Fibonacci retracement level. A break below the current support level of $0.15 would invalidate this bullish outlook, leaving investors to reassess the token’s future direction.
