- WLFI forms a bullish double bottom at $0.18, signaling strong buying interest and suggesting potential reversal momentum.
- Reclaiming the value area low would confirm bullish continuation and open the path toward the $0.25 resistance level.
- The proposed token burn and buyback plan could support long-term market value and strengthen investor sentiment.
World Liberty Financial (WLFI) continues to maintain stability around the $0.18 support level, reinforcing the area as a critical demand zone. The token has defended this region twice, forming a double-bottom pattern that signals renewed market strength. Buyers have consistently absorbed selling pressure, preventing further downside and indicating growing confidence among participants.
The $0.18 region aligns with the value area low of WLFI’s current trading range, marking a pivotal level for directional bias. Price movements above this level could confirm a shift in momentum toward a bullish continuation phase. A sustained reclaim of the zone would likely encourage additional buying interest, targeting mid-range resistance at $0.22 and extending toward the higher resistance area near $0.25.
Liquidity Dynamics Suggest Potential Short Squeeze
Market liquidity above the current price continues to accumulate as short traders maintain positions near previous breakdown zones. If WLFI moves convincingly above the value area low, these traders could face forced liquidations, potentially triggering a short squeeze. Such activity may lead to a swift and impulsive rally toward the next resistance levels, with volume spikes confirming renewed momentum.
Source:TradingView
Adding to the technical strength, World Liberty Financial recently announced a proposal to redirect all protocol-owned liquidity fees toward market buybacks and permanent token burns. This decision aims to reduce supply while supporting long-term token value. Market observers interpret this as a constructive development that could enhance price sustainability if implemented effectively.
Outlook Reflects Strength Above Key Support
As long as WLFI maintains a foothold above $0.18, the overall structure remains favorable for buyers. Sustained trading above $0.19–$0.20 would strengthen the bullish setup, validating accumulation and paving the way for a potential advance toward $0.25 resistance. However, failure to hold above $0.18 would indicate renewed selling pressure and potential range-bound consolidation.
