- WLFI clings to $0.113 support, but bearish EMAs keep downside pressure dominant
- Open interest cools near $1.21M, signaling reduced leverage after January’s peak
- Spot flows stabilize after heavy January inflows, hinting at consolidation before breakout
World Liberty Financial continues to trade under pressure after a sharp decline from its recent peak near $0.1805. On the 4-hour chart, the structure reflects a broader downtrend defined by lower highs and lower lows. Price now fluctuates around $0.115, where short-term support meets rising uncertainty.
Technical Structure Remains Fragile
WLFI currently hovers near the 0.236 Fibonacci level at $0.1139. This zone acts as immediate short-term support. However, sellers still control momentum as the 20, 50, 100, and 200 EMAs slope downward. Additionally, price remains below the 100 and 200 EMA cluster near $0.127–$0.130.
If WLFI drops below $0.113, the $0.100 psychological level becomes the next target. A deeper selloff could retest the $0.093–$0.095 macro base. That area previously marked the swing low after the January correction. Hence, bulls must defend current levels to prevent renewed downside expansion.
WLFI Price Dynamics (Source: Trading View)On the upside, resistance levels stack closely above price. The 0.382 Fibonacci level stands near $0.1266. The 0.5 retracement sits around $0.1369, while the 0.618 level aligns near $0.1472. A decisive move above $0.126–$0.130 with strong volume would suggest improving sentiment. However, without that reclaim, the structure favors consolidation within a corrective bounce.
Open Interest Signals Cooling Leverage
Source: CoinglassDerivatives data shows a clear cycle of expansion and contraction. Open interest hovered near $900,000 in early November before sliding toward $600,000. That decline signaled position unwinding and fading speculation.
Significantly, leverage returned in late December as open interest accelerated sharply. The metric surged above $1.6 million into early January. That spike reflected aggressive positioning and elevated risk appetite. However, after the January top, open interest retraced toward $1.2 million. This drop suggests long liquidations or profit-taking.
Currently, open interest remains near $1.21 million. Participation stays higher than November levels. However, leverage now appears more controlled compared to the January peak.
Spot Flows Show Balanced Liquidity
Source: CoinglassSpot flow data adds further context. Through much of the year, inflows and outflows remained modest and balanced. Moreover, alternating green and red bars indicated steady liquidity conditions.
Volatility increased into late December and January. Inflows spiked sharply in late January, reaching nearly $450 million. That surge aligned with intensified activity near the $1.00 price zone. Consequently, traders likely accumulated aggressively during that period.
Early February brought stronger outflows, signaling redistribution or profit-taking. Net flows have since stabilized. Smaller fluctuations now suggest consolidation rather than sustained directional pressure. Together, price, leverage, and flow data point to a market waiting for its next decisive move.
Technical Outlook for World Liberty Financial (WLFI)
Key levels remain clearly defined as World Liberty Financial trades within a broader corrective structure. Price continues to respect the range formed after the decline from $0.1805 toward the $0.0933 swing low. The market now sits in a pivotal consolidation phase.
Upside levels: Immediate resistance stands at $0.1266 (0.382 Fib), followed by $0.1369 (0.5 Fib) and $0.1472 (0.618 Fib). A decisive breakout above the $0.126–$0.130 EMA cluster would mark the first meaningful shift in short-term momentum. If buyers sustain strength above that ceiling, price could extend toward $0.150 and potentially retest the $0.165–$0.170 supply zone.
Downside levels: Initial support rests at $0.1139 (0.236 Fib). A breakdown below $0.113 exposes the $0.100 psychological level. Below that, the macro base between $0.093 and $0.095 becomes the key structural support. Losing that zone would confirm continuation of the broader downtrend.
The technical structure shows compression beneath declining moving averages. Momentum remains cautious as long as price trades under the 100 and 200 EMAs. However, volatility expansion often follows prolonged consolidation phases.
Will WLFI Reverse Higher?
World Liberty Financial’s next move depends on whether bulls can defend $0.113 and reclaim $0.126 with conviction. Strengthening open interest alongside stable spot inflows would support a recovery narrative. Additionally, sustained positioning above $0.130 would signal renewed demand.
However, failure to hold current support risks renewed selling pressure toward $0.100 and potentially the macro base. For now, WLFI remains in a decision zone. The structure favors patience, with confirmation above resistance or breakdown below support likely to define the next major leg.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/world-liberty-financial-price-prediction-wlfi-consolidates-after-january-spike-in-open-interest/
