The World Liberty Financial (WLFI) token has traded sideways over the past few days, hovering around $0.1600 even as major holders continue selling and the growth of the USD1 stablecoin slows sharply. Despite this, the token’s technical structure suggests that a potential upside move is still possible.
WLFI is currently trading nearly 50% above its monthly low, but blockchain data points to clear weakness across the World Liberty Financial ecosystem.
According to Artemis, the circulating supply of USD1 stablecoins has dropped by 8.2% in the last 30 days to $2.7 billion. A large portion of this—over $2 billion—comes from MGX’s investment in Binance. At the same time, the number of USD1 holders has declined by 21% to 345,000, while adjusted transaction volume has fallen by almost 50%. The slowdown has been significantly sharper than other major stablecoins.
Whale and “smart money” behavior has also turned negative. Large holders have reduced their WLFI positions from 9.36 million (as of November 25) to 6.14 million today. Smart money wallets have trimmed their holdings from 855 million on November 9 to 800 million now. Such outflows are typically seen as bearish indicators in fundamental analysis.
However, there is one positive development: tokens held on exchanges have decreased from 3.2 billion last month to 2.7 billion, reducing immediate selling pressure.
Technical Outlook: Inverse Head & Shoulders Forms
On the eight-hour chart, WLFI has rebounded from its October low of $0.086 to the current $0.1600. The token has also formed an inverse head-and-shoulders pattern, a widely followed bullish reversal structure.
Additionally, WLFI has moved above the 50-period Exponential Moving Average, strengthening the case for short-term upside.
If bullish momentum continues, the next key resistance lies near the 50% Fibonacci retracement level at $0.2035.
A drop below $0.15 would invalidate the bullish setup and open the door to renewed selling pressure.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and readers should conduct their own research or consult a qualified financial advisor before making any investment decisions.
