World Liberty Financial dropped 25.7 million WLFI tokens worth around $1.4 million onto Gate exchange, stirring fresh unease about ongoing token dumps. This move came right after WLFI briefly popped more than 30% in a day, only to snap back down sharply, showing how big transfers keep rattling confidence instead of fueling any rally.
WLFI hovered near a key support level around $0.0516 during the transfer, but buyers stepped in to prevent a deeper sell-off. The price stayed above that line, signaling some defense from the bulls even though conviction seemed cautious. Everyone now watches if these large transfers will pile on the pressure or if exchange activity might finally calm the token’s swings.
Bearish Odds Hold Despite Support Defense
On Binance futures, top traders kept their bearish stance with shorts making up 55.36% of positions against longs at 44.64%. That produced a Long/Short ratio of 0.81, showing sellers held the upper hand throughout recent sessions. This fits how investors reacted to the WLFI transfer, reluctant to boost bullish bets even as the price stabilized near support.
Still, crowded short positioning could trigger sharp reversals if buying volume suddenly surges, but the mood remained cautious and defensive. This leaves WLFI exposed to volatile moves and sudden swings if demand returns quickly. At press time, WLFI traded near the lower edge of its range at $0.0550, facing resistance at $0.0632 with higher hurdles at $0.0758 and $0.1000.
The token paused after weeks of sideways movement following prior declines, indicating selling pressure slowed rather than gained momentum. Technical indicators also hinted at shifting tides the +DI rose to 26.11, overtaking the -DI at 14.95, while the ADX stayed at 23.42. This suggests buyers have started to regain traction, although the overall market tone remains fragile.
This content is for informational purposes and is not financial advice.
