WLFI Faces Liquidation Wave: Can $0.11 Support Hold the Line?

WLFI slips below moving averages amid liquidation cascade

World Liberty Financial (WLFI) is trading around $0.16, down 4.17% over the last 24 hours and nursing a year-to-date loss of 27.85%. The token has struggled to reclaim ground above the 20-day and 50-day moving averages sitting at $0.14, with bears firmly in control as liquidations intensify market pressure.

On-chain liquidations fuel the downside

The weakness stems partly from concentrated on-chain selling pressure. Over the past day, roughly $143,000 in positions were liquidated, with long positions accounting for approximately $127,110 of that damage—far exceeding the $15,890 in short liquidations. This imbalance suggests traders holding bullish bets are being forced out, creating a domino effect that drags price lower as defensive short positions replace exiting longs.

Open interest remains relatively flat near $213 million, indicating traders are cautious but haven’t fully abandoned the market. The sideways positioning suggests most players are waiting for clearer directional confirmation before committing fresh capital.

Technical setup: Where do bulls make their stand?

From a chart perspective, WLFI is eyeing the $0.11–$0.10 support zone as the next critical floor. This level isn’t arbitrary—it aligns with the 23.60% Fibonacci retracement and coincides with market-profile analysis showing the Value Area Low. Historically, this range has bounced twice already this year, though the current approach marks a test of its resilience.

The Relative Strength Index is hovering around 38, approaching oversold territory but not quite there yet. An RSI-driven bounce could trigger a rebound toward the $0.14 resistance (matching the 38.20% Fib level), with intermediate targets at the 50% Fib around $0.1640 and the $0.1666–$0.1760 resistance pocket above.

What happens if support breaks?

If bears crack the $0.11–$0.10 floor, WLFI could spiral toward its all-time low near $0.07—a level last tested in October. For now, that zone remains the line in the sand for traders looking to establish defensive positions.

Momentum remains muted and directionality unclear, meaning any recovery will likely depend on broader market sentiment or a catalyst that shifts trader positioning back toward the upside.