WLFI Sub Market Pressure: How the Rising Wedge Pattern Collapses

Recent, World Liberty Financial (WLFI) faced a significant correction amid a palpable shift in market sentiment. After the ascending wedge consolidation pattern broke downward, the token experienced a loss of approximately 25-30%, marked by increased selling pressure from large investors. Currently trading at $0.11, with a slight recovery of +2.13% in the last 24 hours, the technical situation remains fragile and balanced, with focus on critical support levels.

Break of the Ascending Wedge Pattern and Market Dynamics

Technical analysis reveals a significant breakout pattern. The previous ascending wedge consolidation pattern has given way under selling pressure, signaling potential weakness among buyers. The break below the upper boundary of this ascending wedge has opened the way for the recent decline. However, the $0.1156 zone identified by analysts as a crucial support level continues to play an important role in limiting further drops. If the price retraces and falls below this threshold, an acceleration of losses should not be ruled out.

Massive Whale Liquidations and the Impact of Political Tariffs

According to data from analysis platforms, whales and institutional investors have exponentially reduced their WLFI exposure. About 380 million tokens have been sold by major non-exchange addresses, reflecting a sharp loss of confidence. The Top10 parameter, which measures concentration among the largest holders, has reached 79.30%, indicating increasing vulnerability of market liquidity. Additionally, the influx of new market participants has plummeted by 59%, suggesting a withdrawal of speculative interest and retail investors.

Threats of tariffs announced at the political level have amplified negative sentiment, turning a technical correction into broader liquidation. Macroeconomic uncertainty and regulatory signals have forced a sudden reassessment of risk in the blockchain sector.

Critical Support Levels and Potential for Recovery

The current technical scenario suggests that stabilization around $0.11 could provide a basis for a tactical rebound. However, volatility remains high, and confirmation of a recovery critically depends on renewed buying interest and a potential easing of external pressures. If buyers return and respect the $0.1156 zone, a test phase of the ascending wedge pattern in an upward direction could be initiated, opening the door to a possible reversal of the longer-term positive trend.