Key Insights
- WLFI price has crashed by over 45% from its highest point this year.
- Whales and sophisticated investors have continued to buy WLFI tokens.
- The number of World Liberty tokens on exchanges has plummeted.
WLFI price has been on a relentless bear market since its token launch in September this year. World Liberty Financial token has plummeted to $0.1790, a sharp decline from its all-time high of $0.3200.
This plunge has led to a $3.3 Billion wipeout as the market cap has dropped to $4.4 Billion. This article examines why the token may be poised to rebound in the near term.
WLFI Price May Rebound as USD1 Transactions Jump
A key driver of the WLFI price is the strong performance of USD1, a stablecoin. Its number of holders and transactions is rapidly increasing. The USD1 supply has remained at $2.6 Billion. However, the number of transactions in the last 30 days jumped by 133% to 28.6 million.
Another report by Artemis shows that the adjusted transaction volume rose by 102% to $9.2 Billion in the same period. Most importantly, the number of USD1 holders has continued to rise and now stands at over 518,700.
These metrics indicate that the token is experiencing growth. That’s a trend that may persist as it becomes more widely available across additional chains. It recently launched on Aptos, a top-layer layer-1 network.
The rising number of transactions on World Liberty benefits the network by boosting its fees and the token burns. In September, the developers announced a new strategy for WLFI. All treasury liquidity fees will be used to buy and burn WLFI tokens on the open market.
In another post, they noted that they had burned 3.1 million tokens on BSC and Ethereum. They also purchased 3.81 million WLFI tokens using USD, USDC, and USDT. Future token buybacks and burns will be beneficial to the WLFI tokens over time.
Whale and Smart Money Accumulation
Another key reason why this TRUMP Coin may rebound soon is that whale investors have continued to buy the dip. According to Nansen, these investors now hold over 20.34 million coins. This is a sharp increase from 14 million on September 11.
Smart money investors have increased their holdings to over 858 million coins. That’s up from 856 million in September. Smart investors are those market participants who have a long track record of executing profitable trades.
Meanwhile, the number of WLFI tokens on exchanges has been in a free fall this year. There are now 2.8 billion WLFI tokens in exchanges, down from 2.96 billion in September.
Tumbling exchange balances mean that investors have continued to accumulate the tokens in their self-custody wallets. In most cases, investors do this when they expect the price to bounce back eventually.
WLFI Trump Coin Price Technicals Point to a Rebound
Meanwhile, technical analysis shows that the WLFI price may rebound soon. One reason is the formation of a small double-bottom pattern at $0.1745. Its neckline sits at $0.1887, the highest point reached on October 8.
The Percentage Price Oscillator (PPO) is a special form of the MACD indicator. It just made a bullish crossover on the three-hour chart. Additionally, the Relative Strength Index (RSI) has moved from an oversold level of 12 to its current reading of 36.
WLFI price is expected to rebound soon. It may retest the key level of $0.2220, last reached on September 28. That target sits about 25% above the current price.
The World Liberty Financial token has crashed by 45% from its all-time high. This crash has occurred amid the ongoing lack of investor demand. The falling volume and open interest evidenced it.
However, it may bounce back as the number of USD1 transactions increases. Additionally, whales and sophisticated investors have continued to buy the token, while the volume on exchanges has decreased.
However, there is a risk that the WLFI price may continue to fall if it moves below the support level at $0.1744.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
