WLFI Faces Potential 25% Decline as Team Offloads $1.74 Million in Tokens

The recent market dynamics and actions by the World Liberty Finance (WLFI) team suggest that the token may be on the verge of a significant downturn. Despite an overall market recovery, WLFI has experienced ongoing price drops, and new developments indicate potential challenges ahead.

Key Takeaways

WLFI's price is currently declining, down 3.55% to $0.1032, even as the broader market has increased by 4.15%.
The WLFI team recently sold 16.71 million tokens, valued at $1.74 million, causing bearish sentiment.
U.S. Senator Elizabeth Warren criticized the WLFI project, further impacting its reputation and price.
WLFI is close to a critical support level of $0.097; failing to maintain this could result in a further drop of 25% to $0.070.
Traders are leaning toward short positions as market sentiment remains negative.

Why WLFI risks 25% fall as team dumps $1.74 million tokens

Why is WLFI’s Price Declining?

If you're trying to understand the reason for WLFI's persistent price drop, the answer may lie with the WLFI team itself. Recently, on-chain analytics platform Onchain Lens noted that the team dumped an impressive 16.71 million tokens, worth approximately $1.74 million, onto OKX exchange.

In addition, it's been indicated that more tokens might be deposited into centralized exchanges, adding further pressure to the token's price.

World Liberty Finance team dumped 16.71 million WLFI tokens

Source: X/OnchainLens

Furthermore, another factor weakening WLFI's price is criticism from U.S. Senator Elizabeth Warren, who condemned the Trump-linked project as “the most disgraceful presidential corruption scandal in history.” She asserted that any stakeholder holding over 10% of WLFI must disclose their holdings, which has led to fears that bank applications might be rejected.

Elizabeth Warren slammed the Trump-backed WLFI

Source: X/blckchaindaily

WLFI Price Facing Possible 25% Drop

The daily chart for WLFI shows that the token is approaching a crucial support level at $0.097, a level that has held since October 2025.

WLFI price action

Source: TradingView

If WLFI fails to maintain this key level, it could experience a further decline of over 25%, potentially reaching $0.070. However, if the price holds above this support, there could be the possibility of recovery, reminiscent of past price action. As of now, the Average Directional Index (ADX), which measures trend strength, stands at 15.52, indicating that momentum is weak.

Traders Adopting Short-Leveraged Positions

Despite the prevailing weak momentum, derivatives data from CoinGlass shows that traders are actively placing bearish bets on WLFI. Recent data reveals that intraday traders have built significant leveraged positions—$1.22 million in longs on the support side at $0.101, and $5.64 million in shorts at the resistance level of $0.111.

WLFI Exchange Liquidation Map

Source: CoinGlass

This demonstrates that not only is WLFI's price declining, but market sentiment appears overwhelmingly negative, with traders believing it’s unlikely the token will surpass the $0.111 resistance in the near future.

Final Summary

The combination of team activity and negative external commentary has placed WLFI in a precarious position. The next few trading sessions will be crucial to determine if WLFI can maintain its support or if it will face further declines.