WLFI Price Drops: Is $0.16 All-Time Low Next?

WLFI Faces Downward Pressure: All-Time Low in Sight?

World Liberty Financial's WLFI token, linked to former US President Donald Trump, has decreased by 7% this past week, indicating growing bearish sentiment. Data from both spot and derivatives markets points to decreasing trader interest, raising concerns that the token might revisit its all-time low of $0.16.

Key Indicators Suggest Further Declines

Chaikin Money Flow (CMF)

Analysis of the WLFI/USD four-hour chart shows a consistent decline in the Chaikin Money Flow (CMF). The CMF currently sits below the zero line at -0.13, continuing its downward trajectory.

The CMF indicator combines price and volume to measure buying and selling pressure. A negative CMF suggests selling pressure dominates the market, reinforcing the possibility of a drop towards the all-time low.

Futures Open Interest Declining

Furthermore, WLFI's futures open interest has been steadily decreasing, confirming the overall negative sentiment. At the time of writing, the open interest was $802.84 million, a 5% drop in the last 24 hours.

Declining futures open interest signals fading confidence, as market participants close positions rather than initiate new ones. This adds to the downward pressure on WLFI.

Potential Scenarios: $0.16 or a Rebound Above $0.22?

With demand remaining weak, WLFI is at increasing risk of further losses. If selling continues, the token could test its all-time low of $0.16 and potentially fall lower if sell-offs intensify.

However, a surge in new demand could push the price above $0.22. Market participants should closely monitor buying and selling pressure to get an idea of how to trade.