- WLFI collapsed from $0.46 to $0.25 within hours as insiders dumped massive holdings, leaving retail buyers trapped in losses.
- Over 698M WLFI tokens hit exchanges as insiders controlled supply and governance, fueling volatility and sparking investor concerns.
- Analysts flagged $0.265 as key support, but momentum remains bearish as WLFI struggles below all major EMAs with weak recovery signs.
The crypto market witnessed chaos as World Liberty Financial’s WLFI token plunged after insiders began unloading millions within hours of trading. The price collapsed from $0.46 at launch to $0.25 in less than three hours. Retail buyers rushed in, but insiders dominated the market with heavy sell orders.
According to StarPlatinum on X, wallets linked to insider allocations and vesting schedules dumped more than 698 million WLFI into exchanges. Binance received over 400 million tokens, while OKX and Gate.io absorbed hundreds of millions more.
Moreover, the structure behind WLFI’s launch raised concerns. Insiders controlled 56% of supply, while the Trump family held 22.5 billion tokens and 75% of revenue rights. Early investors entered between $0.015 and $0.05, sitting on nearly 20x returns at launch.
Hence, many sold aggressively to secure profits, fueling volatility. Consequently, retail investors faced steep losses, highlighting risks in token unlock schedules driven by insider governance votes.
Technical Price Analysis
Unknown.Ai, a popular analyst, highlighted WLFI’s brutal decline. “Price action: Brutal dump straight into key support at $0.265,” he noted. WLFI bounced briefly but remained below all major EMAs across timeframes.
Source: Unknown.Ai
In addition, there was no discernible pattern of reversal, indicating that bearish momentum was dominant. As per the chart, there were resistance zones at $0.285, $0.305, and $0.330, and major support levels at $0.265 and $0.250.
Additionally, the WLFIUSDT trading pair displayed significant volatility over recent sessions. The token briefly rallied from $0.275 to a peak near $0.395 before heavy selling pressure emerged.
However, the correction dragged the price down to $0.330 before another failed rally attempt near $0.370. Finally, prices dropped sharply again to $0.2662, marking the session’s lowest point.
Broader Market Outlook
Volume indicators confirmed increased activity during rallies and selloffs, proving traders were aggressively positioning. Moreover, the EMA 200 remained below current levels, signaling potential for future recovery if momentum changes. However, without reclaiming $0.285, the outlook stays bearish. Scalpers may attempt longs near support, but trend-followers remain cautious.
Consequently, WLFI’s debut exposed structural risks tied to insider dominance. Besides, Trump’s involvement added political weight but failed to ease investor concerns. Hence, WLFI’s next moves will determine whether the project stabilizes or continues to unravel under insider pressure.
