WLFI struggling performance appears short-term.
Key Takeaways
Содержание статьи:
Why did WLFI’s price drop despite launching its stablecoin USD1?
WLFI saw a rapid 10% decline due to heavy liquidity outflows and bearish market sentiment.
Are whales and institutions still interested in WLFI?
Yes, major entities like Robinhood and Bitget invested over $30 million, signaling potential upside interest.
World Liberty Finance [WLFI], the Trump-backed crypto entity, has been on a continuous development spree expected to drive positive price reflection.
That has not been the case. Despite launching its stablecoin, USD1, on the Aptos [APT] chain, WLFI’s price dropped rapidly, falling by over 10% in value, at press time.
The heavy outflow was supported by a surge in trading momentum, as volume reached $550 million, more than 100% higher than the previous day’s low.
AMBCrypto’s analysis indicates that amid this uncertain situation, the token could experience a rebound driven mainly by whales and a group of institutional investors.
Millions leave the WLFI market
A massive liquidity outflow occurred in the WLFI perpetual market as bearish sentiment among investors deepened.
CoinGlass data shows that liquidity outflow totaled $82 million, reducing the total value locked to $630 million during this period.
Source: CoinGlass
Investors on CoinMarketCap had earlier warned that a price fall could occur, as more than 4% of investors shifted from bullish to bearish positions.
The community sentiment tracking WLFI also dropped from 79% to around 75%, as of writing, reflecting a declining interest in trading the asset.
Although perpetual traders are selling, large investors appear to be positioning for potential upside gains.
Whales are betting on the upside
Arkham Intelligence reports that major crypto entities with substantial capital reserves have been actively accumulating WLFI over the past seven days, with centralized investors leading the charge.
Robinhood, Bitget, Bitpanda, and Indodax collectively invested over $30 million in WLFI during this period. However, not all exchanges participated in the buying spree.
Data also showed that Binance, MEXC, and Coinbase sold small portions of their WLFI holdings, though the reductions were minimal—each under 1% of their total reserves.
Source: Arkham
This suggests the sell-off was likely a profit-taking event rather than a sign of dominant selling pressure across the market.
The rising Funding Rate reinforces this outlook, with WLFI’s rate holding positive at 0.0033% at press time.
This suggests that, despite the recent price drop, certain investor groups are still injecting capital into the market, sustaining the gap between spot and derivatives trading and signaling a broadly bullish sentiment.
A long way ahead
The liquidation map shows that more long liquidity clusters are lined up ahead of WLFI’s current price level. Typically, such liquidity zones act as magnets, attracting price movements toward them over time.
If that pattern holds, WLFI could rally upward, with targets around $0.193, according to data from the 1-day liquidation map frame.
Source: CoinGlass
Next: Avalanche: Examining impact of $6M whale activity on AVAX prices
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