Why is Trump-backed WLFI falling in price today?


The price of Trump family-backed World Liberty Financial (WLFI) has fallen sharply over the past 24 hours despite broader gains in the cryptocurrency market. The token fell 10% to $0.0818, continuing significant weekly and monthly losses.

Last week, WLFI lost 15%, and monthly losses are 17%. This collapse comes against the backdrop of the upward movement due to A Ceasefire for two weeks The agreement between the United States and Iran.

The broader cryptocurrency market rose 0.67% to 2.43 trillion in the process. Bitcoin price remains Above $71,000, Ethereum price rose above $2,100 with steady inflows. Analysts attribute WLFI’s decline to panic surrounding its controversial, home-linked borrowing structure.

WLFI price drops 10% – what led to the sudden sell-off?

The price of WLFI fell as rising concerns weighed heavily on investor confidence across the broader cryptocurrency market.

This decline came right before the massive issuance of digital currencies, which will likely increase the supply of assets in circulation.

There were also large cross-chain transactions that traders responded to, which appear to be linked to wallets linked to the project. These moves have increased speculation about the possible presence of insiders and increased governance risks.

The Arykham data platform’s blockchain records that the project’s wallet is collateralized by 5 billion WLFI tokens Dolomite. These collateral took the form of about $75 million in borrowed stablecoins, such as USDC and the project token USD1.

Why is Trump-backed WLFI falling in price today?Why is Trump-backed WLFI falling in price today?
Source: Arekham data

Soon after, more than $40 million of the borrowed funds were transferred to Coinbase Prime, attracting the attention of analysts in a short period. The move was made several hours after President Donald Trump announced a Ceasefire between the United States and Iran Charter.

Global freedom prices fall amid side concerns

On-chain metrics indicate that WLFI’s large position has pushed the Dolomite lending pool to full utilization capacity. This restricted depositors in the short term to recover their advanced assets.

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According to market observers, the structure has a focus on exposure among a small network of market participants. Other commentators refer to this practice as high-speed treasury policy rather than normal liquidity management. Volatility remains a concern for investors weighing liquidity risks and the impending token unlock, despite the response.

How much will WLFI price fall this week?

The World Liberty Financial token continued its decline as selling pressure intensified across major exchanges. It traded at just under $0.083 after missing key support levels during the day. The price action depicts a clear breakout of the resistance area at $0.10.

The MACD indicator remains in the negative zone with increasing bearish momentum. The signal lines continue to move downward without any convergence. The RSI is near 30, which borders on the oversold zone. Sellers are still protecting the lower highs in the down channel.

The nearest support is at $0.079, which is the recent swing low. A failure below this level could open the $0.075 area. Once the downward pressure increases at a higher rate, the next downside target will be near $0.070.

Why is Trump-backed WLFI falling in price today?Why is Trump-backed WLFI falling in price today?
Source: TradingView

On the positive side, recovery attempts are facing resistance at around $0.085. A sustained rise beyond this mark could pave the way to $0.090. Further bullish confirmation would be needed to re-establish control over the $0.10 area.





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