WLFI's recent trend has been quite interesting, with positive news coming from regulators, but the technical side is sending mixed signals. Market segmentation is obvious, with bulls and bears each sticking to their own views.

On the positive side, the application for a national trust bank license and the custody of USD1 stablecoin are still significant. Being able to connect with traditional finance indeed boosts the project's credibility, which is crucial for attracting institutional funds. Their USD1 stablecoin circulation has already surpassed 3 billion, and the ecosystem development momentum is still there. Moreover, early ICO investors are still making profits, and compared to other coins launched in 2025, WLFI has performed relatively better during downturns, which may indicate that some market participants are quietly accumulating.

However, there are also many issues. The bank license faces considerable resistance—opposition from the banking industry, suspicions of regulatory arbitrage, concerns over the lack of FDIC insurance, and the approval process could be delayed until after 2027. From a technical perspective, the 7-day EMA has fallen below the 25 and 99-day EMAs, the MACD line is below the signal line, and the price is stuck below the middle line of the Bollinger Bands. The bearish signals are clear, and high-turnover selling actions are ongoing.

Another hidden risk is token unlocking. Once a large-scale retail token unlock occurs, the selling pressure could be terrifying. Liquidity is already limited, and the selling pressure from airdrops is eroding market confidence. So, the current situation is that the fundamentals tell a story, the technicals are pouring cold water, and the community is divided over token unlocking and approval delays.