World Liberty Financial moved 156.31 million WLFI tokens valued roughly $8.06 million to four major exchanges, raising questions about renewed selling pressure.
As per Onchain Lens on X, the institution transferred the tokens into Binance, Gate, Coinbase, and MEXC, potentially preparing for sales.
These deposits emerged as WLFI struggled to recover from its recent decline, with the bears maintaining control.
Notably, the broader spot activity meanwhile presented a different outlook, with exchange withdrawals continuing despite the significant deposits.
Spot outflows challenge the latest exchange deposits
Particularly, WLFI registered over 10 consecutive days of spot net outflows, highlighting sustained withdrawals from centralized exchanges.
According to CoinGlass, the latest reading highlighted $136.45K in net outflows as of press time, extending the prevailing trend.
Generally, such activity usually limits immediately available exchange supply, potentially reducing selling pressure when demand remains stable.
The World Liberty Financial’s $8.06 million transfer however introduced fresh uncertainty around the sustainability of these outflows.
The contrasting developments underscored the expanding gap between the general activity on the exchanges and the most recent transactions in the project.
Despite continued outflows, WLFI’s price failed to recover, suggesting buyers had struggled to overcome existing bearish pressure.
This weakness became more and more evident when the token broke below its consolidation range.
Can WLFI defend the crucial $0.0500 level?
A look at the daily technical structure: Official World Liberty Financial [WLFI] broke below $0.0538, losing the lower boundary of its previous consolidation range.
At the time of reporting, the WLFI market value stood around $0.0517, bringing the psychological $0.0500 support into the spotlight.
Meanwhile, the RSI indicator declined to 33.97, below its moving average of 42.14, implying shrinking buying strength, as the indicator approached oversold territory.
Furthermore, the MACD indicator validated the bearish picture as its line fell to −0.0012, below the −0.0008 signal line, with its negative histogram further reinforcing persistent downside pressure.
Beyond the bearish technical outlook, liquidity in the derivatives market offered another clue to possible short-term price movements.
Liquidation clusters expose WLFI’s next price targets
The 24-hour Binance Liquidation Heatmap revealed significant liquidity concentrations above and below WLFI’s prevailing price.
Overhead, notable liquidity bands appeared around the $0.0523 and $0.0533 region, with additional liquidity near the $0.0543 area.
These clusters could attract price movements in case of a price recovery, which could potentially trigger liquidations among the leveraged short positions.
The downside however also carried significant liquidity, especially around the $0.0511 and $0.0502 region.
The lower clusters aligned closely with WLFI’s critical $0.0500 support, reinforcing its importance for near-term price action.
A pull back to these levels could lead to extended liquidation and increased selling pressure.
Then again, if buyers step in again World Liberty Financial may be forced into an overhead liquidity situation, but the big picture remains bearish.
Overall, despite continued spot outflows, WLFI remained vulnerable with exchange deposits and bearish technical indicators signaling more downside.
Final Summary
- World Liberty Financial’s $8.06 million in exchange deposits raised fresh concerns despite continued spot outflows.
- WLFI’s breakdown below $0.0538 increased the likelihood of another decline toward $0.0500.