The price of the World Liberty Financial token has moved sideways in recent days as whales abandoned it and the growth of the $1 stablecoin slowed.
Summary
- WLFI price has formed an inverse head and shoulders pattern on the eight-hour chart.
- Whales have continued dumping their WLFI tokens in recent weeks.
- The supply of $1 stablecoins in circulation has decreased, a sign that their growth has lost momentum.
Global financial freedom (W.L.F.) the price was trading at $0.1600, a range in which it has remained in recent days. This price is ~50% above this month’s lowest level.
Third-party data points to some weakness in the World Liberty network. For example, data collected by Sagebrush shows that the $1 stablecoin is not growing like it used to in the past.
The supply of $1 stablecoins has fallen 8.2% in the last 30 days to $2.7 billion. The majority of this supply, valued at over $2 billion, comes from MGX’s investment in Binance, the world’s largest crypto exchange.
the number of 1 dollar Holders have fallen 21% in the last 30 days to 345,000, while adjusted trading volume has fallen almost 50% in the last 30 days. It has lost momentum at a faster rate than other stablecoins.
Meanwhile, more data shows that whales have reduced their positions in recent months, reducing their holdings from 9.36 million on November 25 to 6.14 million today. Similarly, smart money investors have reduced their holdings from 855 million on November 9 to 800 million today.
The decline of smart money and whale holdings is one of the most common bearish signs in fundamental analysis. However, on the positive side, the number of tokens on exchanges dropped to 2.7 billion, from 3.2 billion last month.
WLFI Price Technical Analysis
The eight-hour period chart shows that the WLFI token price has recovered from the year-to-date low of $0.086 in October to the current $0.1600. This bounce means that it has performed better than other popular tokens in technical analysis.
Another positive is that the token has formed an inverse head and shoulders pattern, a common bullish reversal sign in technical analysis. It has also moved above the 50-period exponential moving average.
Therefore, while WLFI price has some bearish catalysts, its technicals suggest it has more upside to go. If this happens, the next key resistance level to watch will be the 50% Fibonacci retracement level at $0.2035. A fall below the $0.15 support will invalidate the bullish outlook.
