WLFI Experiences 33% Surge After 49-Day Downtrend: Next Stop $0.25?

World Liberty Financial (WLFI) has made significant gains, breaking a 49-day downtrend with a 33% increase in value. This uptrend is supported by positive technical indicators, including a bullish MACD crossover and significant short trader liquidations. WLFI's price could target the $0.25 resistance level if it maintains its momentum.

Key Takeaways

WLFI has emerged from a 49-day downtrend, with a 33% gain signaling rising investor interest.
Over $3.4 million worth of short positions are at risk of liquidation; maintaining prices above $0.20 could propel WLFI towards a resistance level at $0.25.
The overall cryptocurrency market is showing recovery signs, with WLFI leading today’s price increases, reflecting robust trading momentum.

World Liberty Financial (WLFI) has shown impressive performance in the market today, registering a notable surge of over 33% within a 24-hour period. This price increase helped the token reclaim critical resistance levels, supported by a significant uptick in trading activity and investor interest.

Rally Sparks Renewed Interest

WLFI successfully broke out of a descending diagonal resistance that constrained its movement for 49 days. This breakout serves as a confirmation of a technical reversal, with the next price target set at around $0.25, aligned with the upper boundary of its previous trading channel.

WLFI price chart.

Achieving this price point would mark WLFI's peak since September 22. However, the sustainability of these gains will depend on market momentum. If WLFI fails to maintain its position, it could drop below the resistance trendline and revisit support levels around $0.11.

Strengthening Bullish Movement

The bullish momentum appears poised for further growth according to the latest technical analysis. The Moving Average Convergence Divergence (MACD) indicator has revealed a bullish signal through the formation of a Golden Cross pattern. This happens when the blue MACD line crosses above the orange signal line, indicating that buying momentum is returning and suggesting WLFI might return to a bullish phase.

WLFI technical indicator chart.

Current MACD values remain on the bearish side, indicating there is substantial upside potential as the trend continues. Additionally, the Money Flow Index (MFI) has climbed to 55.57, demonstrating renewed capital inflow. An upward trend in the MFI indicates that investors are reallocating resources toward WLFI, further strengthening its recovery.

Short Sellers Face Liquidation Risks

Short traders in the derivatives market are encountering significant pressure, with many being forced to exit their positions. Data from CoinGlass indicated that investors who took short positions on WLFI in the last 24 hours have faced losses totaling approximately $3.45 million.

WLFI liquidation data

Moreover, ongoing WLFI rallies may lead to more forced liquidations. For instance, if the price reaches $0.184, about $3.91 million in contracts will get triggered, while a rise to $0.168 could add an additional $2.46 million in potential liquidated positions, exacerbating short traders' losses.

In conclusion, WLFI's recent price increase along with robust trading signals depict a promising turnaround, provided it can sustain its upward momentum and avoid price corrections.