- WLFI price dropped over 10% in 24 hours, falling to $0.2216 despite weekly gains of 2.66%.
- Breakout from an ascending triangle could still push WLFI toward the $0.33–$0.35 range if momentum holds.
- Derivatives data reveal a heavy long bias, with Binance account ratios above 3.95, signaling crowded positioning risk.
World Liberty Financial (WLFI) is navigating a volatile trading environment, combining strong technical breakout potential with near-term selling pressure. Traders are closely watching support and resistance levels as the market tests sentiment around the token.
Technical Structure and Breakout Setup
Analyst CryptoBull_360 (@CryptoBull_360) noted that WLFI was preparing for a short-term breakout from an ascending triangle on the 4-hour chart. This pattern often signals continuation higher when confirmed, especially with rising volume supporting the move.
WLFI has spent several sessions consolidating below resistance at $0.225–$0.23, with each rejection met by progressively higher lows. The ascending base of the triangle demonstrates steady demand and sustained buying interest in the market.
With the breakout above resistance already observed, the measured target suggests a potential rally toward $0.33–$0.35. Rising volume adds weight to the bullish scenario, as historical data show stronger breakouts when volume expands.
Short-Term Weakness and Price Decline
Despite the constructive setup, WLFI has faced short-term pressure. The price dropped to $0.2216, reflecting a 9.11% decline in the past 24 hours. Intraday weakness saw the token fall from highs of $0.2421, marking a rejection at overhead resistance.
Over the past week, WLFI managed a modest 2.66% increase, and over seven days it remains up 5.53%. However, across multiple timeframes, the token is down nearly 5%, indicating gains have yet to stabilize into a trend.
The intraday breakdown below the $0.235–$0.24 band is proof of sellers’ dominance. Unless the price recovers this level, the $0.215–$0.22 area may be subjected to more selling pressure.
Derivatives Positioning and Trader Sentiment
Derivatives data from major exchanges show a heavily long-biased market. On Binance, the WLFI/USDT long/short ratio is 3.9554, while on OKX it stands at 3.78. These figures indicate most accounts are positioned for upside.
Even more notable is Binance’s top trader long/short account ratio, which is also high at 3.9529. However, the position-based ratio is lower at 1.3769, showing larger traders have adopted more balanced exposure compared to retail accounts.
This kind of disparity between long-heavy sentiment and declining price action is a red flag. A decline below the $0.22 support will be catastrophic, triggering liquidations and further losses. Alternatively, an advance above $0.235 can trigger a short squeeze-drove recovery.
