WLFI isn’t having an amazing week. The token dropped greater than 20% in a single day on October 10 and is now down round 35% from current highs.
When you’ve been questioning what’s behind the crash, it’s a mixture of whale exercise, governance drama, and technical weak spot all hitting without delay.
WLFI Whale Dumping and Unlock Flood
The largest issue, whales dumping tokens. On October 10, a number of massive holders offloaded large quantities of WLFI, sparking a wave of panic promoting.
That transfer got here proper after 20% of presale tokens unlocked on September 1, rising the circulating provide to about 24.66 billion WLFI, or roughly 1 / 4 of all tokens.
When provide floods the market like that, it often results in short-term ache. The info backs it up, WLFI trading volume jumped 506% in 24 hours, hitting $1.19 billion, which reveals how intense the promote strain actually was.
Including gasoline to the hearth, WLFI $25 million token sale to Hut 8 on October 4 didn’t sit nicely with traders, who noticed it as a attainable insider benefit.
Governance Drama Shakes Confidence
Then there’s the governance aspect of the story. WLFI group made a controversial transfer by freezing a whole bunch of wallets, together with one belonging to Justin Solar, after experiences surfaced that he moved tokens to exchanges.
That call got here after accusations of damaged “no-sell” guarantees and even APY manipulation by way of HTX, which made traders nervous.
Freezing wallets goes in opposition to the decentralization ethos that crypto stands for, and it immediately broken belief within the challenge.
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To make issues worse, the Trump household reportedly holds round 22.5 billion WLFI, elevating fears that an excessive amount of energy is concentrated in a number of fingers. Proper now, sentiment is deep within the purple, RSI-14 sits round 25.5, which reveals the token is closely oversold.
WLFI Chart Breakdown Confirms the Pattern
The WLFI chart tells the identical story. WLFI has damaged under a number of assist ranges and is now buying and selling about 35% below its 30-day SMA ($0.205).
Momentum continues to be bearish, the MACD histogram at -0.0062 factors to continued draw back, and Fibonacci ranges put the subsequent main assist at $0.127, proper across the 78.6% retracement zone.
If WLFI worth drops under $0.13, we might see one other sharp leg down. On the flip aspect, a transfer again above $0.173 (the 50% Fib stage) could be the primary signal that bulls are regaining management.
Outlook for WLFI Price
So, why is WLFI price down today? It’s the proper storm, whales promoting, token unlocks, belief points, and a technical breakdown all hitting without delay.
The one vibrant aspect proper now could be that the token seems extraordinarily oversold, which means a short-term bounce isn’t off the desk. However for an actual restoration, WLFI must regain key resistance ranges and, extra importantly, restore investor confidence.
Till that occurs, it’s in all probability good to maintain watching whale actions and unlock schedules carefully, as a result of that’s the place the subsequent massive transfer will come from.
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