Why does WLFI have a 25% risk of decline when the team sells $1.74 million worth of tokens?

The current market structure and recent activities from the World Liberty Finance (WLFI) team, linked to President Donald Trump, are raising concerns about a significant decline in this token. Amid the overall market recovery, WLFI appears weak as its value continues to drop.

At the time of writing, the global cryptocurrency market has increased by 4.15% in the past 24 hours, while WLFI’s price has fallen by 3.55%, down to $0.1032. However, WLFI’s trading volume has surged to $156.75 million, an increase of over 85% during the same period. This indicates that investor and trader activity remains very lively despite the token’s downward trend.

Reasons Behind WLFI’s Continued Price Drop

Monitoring the market movements and WLFI’s value raises questions about what is causing this ongoing decline.

One main reason is believed to originate from the WLFI development team itself. According to the Onchain Lens cryptocurrency transaction tracking tool, the WLFI team recently sold 16.71 million WLFI tokens, worth approximately $1.74 million, on the OKX exchange.

Additionally, Onchain Lens warns that this team may continue to deposit tokens into centralized exchanges (CEX), further increasing downward pressure on the asset.

Source: X/OnchainLens Not only that, recent statements by U.S. Senator Elizabeth Warren have also contributed to increasing downward pressure on WLFI. In a statement, she criticized the WLFI project related to Trump, calling it “the most shameful presidential corruption scandal in history.”

Source: X/blckchaindaily She also emphasized that any individual owning 10% or more of WLFI must disclose their assets, and confirmed that all banking license applications related to this project will be rejected.

Risk of WLFI Falling Another 25%

Analyzing WLFI’s daily price chart shows that the token is at a critical level, fluctuating around the support at $0.097. This support level has remained stable since October 2025.

Source: TradingView Based on current trends and historical data, if WLFI cannot hold the $0.097 support, the price could drop more than 25%, down to $0.070. Conversely, if the token stays above this support level, a strong recovery is entirely possible, as has happened before.

Currently, the technical indicator Average Directional Index (ADX), which measures trend strength, is at 15.52—below the key threshold of 25. This suggests that WLFI’s current momentum is very weak.

Market Sentiment and Trading Strategies

Despite weak momentum, data from CoinGlass shows that traders are actively betting on a downward trend for WLFI.

According to the latest data, day traders have built leveraged positions at two key levels: $0.101 below (support) and $0.111 above (resistance). Here, long positions with leverage amount to $1.22 million, while short positions with leverage reach $5.64 million.

Source: CoinGlass This indicates not only that WLFI’s value is under downward pressure but also that market sentiment leans toward negativity. Traders seem to believe WLFI is unlikely to break above the $0.111 resistance level in the near future.

Conclusion

With selling pressure from the development team, political criticisms, and negative market sentiment, WLFI faces the risk of deeper declines. However, if the token can hold above the critical support level of $0.097, a reversal opportunity may still exist. Investors should exercise caution and closely monitor technical signals and market factors to make informed decisions.

Mr. Giáo