WLFI whale panic sparks liquidity drain: Can bulls hold on to $0.20?

Key Takeaways

Are World Liberty Financial whales giving up?

Not entirely. While one whale pulled 11M WLFI worth $2.15M from liquidity and sold, creating sharp downside pressure, broader whale activity remains mixed.

What’s driving WLFI’s current selling pressure?

Futures Netflow dropped to -14.81M, retail selling volume exceeded buys by 192M WLFI — signs of aggressive sell pressure pushing the token toward $0.186 support.

World Liberty Financial [WLFI] bounced back moderately as it successfully defended the $0.20 support, after dropping to a local low $0.19. 

In fact, as of this writing, WLFI was trading at $0.200, rising by 0.92% on the daily charts. 

Before this gain, the altcoin had been on a strong downtrend, dropping by 36% over the last 30 days. Now, some market players are signaling fatigue and taking a step back. 

What are WLFI whales up to?

As WLFI dropped below $0.2, a whale panicked and hurriedly closed its positions. Per Lookonchain, a whale removed 11 million WLFI worth $2.15 million from the liquidity pool, selling them for 521 Ethereum [ETH]. 

Usually, when an offload occurs, it signals a lack of confidence in the market. However, not all whales exhibit this type of behavior. 

According to Nansen data, World Liberty Financial whales have recorded a positive balance change for three consecutive days. 

Over this period, whales have acquired 61 million tokens, reflecting sustained demand. 

Derivatives turn highly bearish

Interestingly, with the market showing weaknesses, investors in the Futures markets have reduced exposure. 

According to CoinGlass, Futures Inflow fell to $270.55 million while Outflow jumped to $285.36 million. As a result, Futures Netflow dropped to -$14.81 million, marking a 68% change. 

When Futures Outflow hikes, it suggests that traders are aggressively closing positions. 

Retail selling activity skyrockets, too 

Surprisingly, while WLFI has yet to make minimal gains, selling activity on the Spot market skyrocketed. According to Coinalyze, World Liberty Financial has recorded a negative Delta for three consecutive days. 

Over this period, the altcoin saw a cumulative total of 685.25 million in sell volume compared to 495.81 million in buy volume. 

As a result, the altcoin recorded a negative buy-sell delta of -192.44 million, a clear sign of aggressive selling. 

Exchange activity echoed this behavior. 

According to CoinGlass, WLFI Spot Netflow turned positive for the first time in two weeks. At press time, Netflow was $507k, indicating higher inflow — a sign of increased selling pressure. 

Historically, increased selling activity from retail traders has resulted in intense downward pressure, often a precursor to low prices.

Is WLFI set for more losses?

World Liberty Financial is experiencing intense bearish pressure, with investors across the market selling aggressively.

As a result, the altcoin’s Stochastic RSI dropped into oversold territory, settling at 28 as of this writing. At the same time, the Relative Strength Index (RSI) fell to 44, holding within bearish territory.

Such a market setup signals higher selling pressure and weak upward momentum.

Having said that, if sellers, including whales, continue to dominate the market, WLFI will drop below $0.20 with $0.186 acting as key support.

However, if bulls establish a position in the market to defend this support level, they could push the altcoin towards $0.224 in the short term.