Key Insights:
- WLFI price rebounds from key support level, showing early signs of a potential trend reversal.
- Price trades below key moving averages, with $0.2161 marked as next critical resistance zone.
- Volume remains low; traders await breakout above $0.22 to confirm short-term bullish momentum.
World Liberty Financial (WLFI) was trading at $0.2019, showing a 3.16% gain over the last 24 hours. The recent price recovery followed a strong bounce from the $0.19 level, a zone that aligns with both the Value Area Low and the 0.618 Fibonacci retracement. This area had been tested during a liquidity sweep, where the price briefly dropped below support before reclaiming it quickly.
Market analysts believe this move resembles previous price action, where WLFI dipped into a support zone, consolidated, and later moved higher. The bounce comes after stop-losses were likely triggered, creating room for larger players to accumulate positions. The setup has created a potential scenario for short-term price momentum.
Moving Averages Show Mixed Signals
On the 4-hour chart, the price remains below key moving averages — the MA(7), MA(25), and MA(99). These averages currently sit at $0.1991, $0.2161, and $0.2138 respectively. The price is attempting to break above them, which may indicate the start of a recovery trend if followed by stronger buying pressure.
The MA(25) at $0.2161 could act as the next resistance level. Traders are watching this zone for a breakout, as crossing it would indicate a stronger shift in momentum. If the price fails to break above these levels, consolidation may continue within the current range.
Chart Pattern Reflects Past Behavior
A familiar pattern is forming on the WLFI chart. The structure of the recent drop and bounce appears similar to previous movements where the asset found a local bottom and moved higher. Some market participants say the current bounce mirrors this historical setup.
CryptoPeak noted,
“The $WLFI chart shows a similar pattern to previous dips and rebounds, suggesting momentum toward higher levels.”
The chart includes a green arrow pointing to the $0.28 level, which may act as a future target if momentum continues. However, confirmation through volume is still lacking, which adds uncertainty to the next possible move.
Volume and Momentum in Focus
Volume levels remain moderate, and a sharp rise in trading activity is needed to confirm any breakout. A move above $0.215–$0.22 with increasing volume could support a short-term bullish trend. Without that confirmation, the price could remain range-bound or retest lower levels.
The RSI (Relative Strength Index) on the 4-hour timeframe is near 47, showing a mild recovery from oversold levels. This reflects a neutral stance, with no clear overbought or oversold signals. Traders are watching this closely to gauge further momentum.
Market watchers are cautious.
Tom Tucker stated,
“Market makers may have set the stage for a stronger move, eyes on volume for confirmation.”
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |