Review of World Liberty Financial after transferring 235 million WLFI

After plunging to $0.15, World Liberty Financial (WLFI) recovered to $0.18 before correcting back to around $0.16. Currently, WLFI is trading at $0.1641, down 6.21% from the previous day. Prior to this decline, WLFI had recorded a 2.56% increase on the weekly chart, reflecting a short-term upward trend.

The strong upward volatility has created opportunities for investors to implement flexible and effective trading strategies.

World Liberty Financial Moves 250 Million Tokens

According to data from Onchain Lens, World Liberty Financial transferred 235 million WLFI, equivalent to $40.63 million, to the Binance exchange. Notably, since WLFI was issued, the development team’s wallet has never made any deposits into Binance, indicating a significant change in market strategy. After this transaction, the team’s wallet still holds WLFI worth up to $1.7 billion according to Arkham data.

Source: Arkham Large-scale transactions like this often signal that the market is preparing for market-making activities or liquidity additions. According to analyst 0xShonkovich, these transfers may be related to an airdrop program for USD1 holders, expected to last four weeks.

However, investors and traders may also interpret this action negatively, leading to panic selling before official information is confirmed, thereby exerting strong selling pressure on the market.

Selling Pressure Continues to Rise

On January 25, buying momentum appeared strongly to defend the $0.17 level, but this effort was unsuccessful as WLFI closed at a lower level. On January 26, market sentiment shifted noticeably to a downward trend, causing WLFI’s net spot capital flow to reverse sharply, increasing to $5.18 million from a previous negative $2.33 million.

Source: CoinGlass The fact that this indicator turned positive indicates that most traders increased their WLFI deposits into exchanges, reflecting a rising sell trend. At the same time, large holders also intensified selling, with total tokens withdrawn reaching 254.9 million WLFI, far exceeding the 240 million WLFI deposited. As a result, the balance turned negative, down to -14 million, confirming that selling pressure from this group is increasing.

Source: Nansen Transaction history shows that heavy selling from multiple parties often accelerates the downtrend, pushing prices lower.

Next Outlook for WLFI

Following the development team’s transfer of WLFI to exchanges, the strength of this coin in the market has significantly weakened. The Relative Strength Index (RSI) has fallen into the oversold zone after showing a bearish crossover signal the day before, currently at 47 – indicating selling pressure is dominant. Meanwhile, the Stochastic Momentum Index (SMI) also dropped sharply from 13 to 4.4, reflecting a strengthening downward momentum.

Source: TradingView The deep decline in momentum indicators suggests that the bullish trend has weakened, and buyers are being pushed out of the market. In this context, WLFI becomes vulnerable and may continue to decline. If selling pressure persists, the coin could seek support around the $1.5 level.

Conversely, if the market absorbs the transferred WLFI well, the coin could recover to $0.17 and aim for a short-term target of $0.19.