World Liberty Financial (WLFI) staged a dramatic weekend rally, briefly climbing 30% from its record low. Yet, despite the sharp rebound, signals suggest the token may not be ready for a sustained bullish reversal just yet.
WLFI’s Weekend Recovery Fizzles
After its controversial token unlock, WLFI collapsed to $0.16, wiping more than $6 billion from investor portfolios. The move shocked the market and triggered heavy debate about the token’s future.
Over the weekend, WLFI bounced back, surging as high as $0.24 on Sunday. Hopes of a fresh rally quickly emerged, with traders eyeing a potential breakout from oversold levels. However, momentum did not hold. At the time of writing, WLFI has slipped to $0.21, marking a 10% decline in the past 24 hours.
The short-lived recovery highlights the fragile state of WLFI’s price action, where optimism is quickly tempered by selling pressure.
Technicals Paint a Mixed Picture
On the 1-hour chart, WLFI appears to be moving within a descending channel, typically a bearish formation. Interestingly, a potential buy signal also emerged on the same chart. However, indicators suggest that this signal is unlikely to play out immediately.
The Moving Average Convergence Divergence (MACD) has formed a bearish crossover, a sign that WLFI could struggle to push higher in the near term. At the same time, the Chaikin Money Flow (CMF) remains below the zero line, hinting at weak capital inflows into the token.
Unless these indicators shift, WLFI faces an uphill battle in breaking above its key resistance at $0.24.
Trading Volume Cools Off
Another red flag comes from trading volume. At launch, WLFI recorded a staggering $5 billion in daily volume, fuelled by hype and speculative inflows. That figure has since plunged to around $1.5 billion.
The decline signals waning interest as early investors take profits and retail enthusiasm cools. A sustained drop in activity often leads to consolidation or further price weakness, as fewer buyers remain to absorb selling pressure.
For WLFI, this cooling volume environment could limit upside potential in the short term, keeping the token capped below resistance.
Price Outlook: Caution Ahead
On the 4-hour chart, WLFI is still locked in a broader downtrend, trading below a stubborn resistance line. Unless a bullish divergence develops, the token risks revisiting its recent $0.16 lows.
If buyers re-emerge and WLFI breaks decisively above $0.26, sentiment could shift. Such a move would confirm a breakout and potentially open the path toward $0.32, a level that could mark the start of a recovery phase.
This kind of trajectory is not unusual in crypto markets. Many hyped launches, from memecoins to event-driven tokens, have followed the same pattern: explosive initial rallies, sharp pullbacks, and then a critical retest of resistance.
The coming days will be crucial for WLFI. Without stronger conviction from buyers, the token may remain stuck in its current downtrend. However, a volume-backed breakout could set the stage for a meaningful rebound.
