WLFI Price Faces Bearish Retest Risk at $0.13 as Bullish Momentum Declines

The WLFI price is currently facing challenges below significant resistance levels, with decreasing bullish volume raising concerns about the stability of the recent price movements. As a result, there is an increasing risk that WLFI could undergo a bearish retest toward the support level of $0.13.

Key Takeaways

WLFI price is struggling beneath critical resistance, with fading bullish volume.
The likelihood of a bearish retest towards the $0.13 support zone is growing.
The price remains confined within a range of $0.13 and $0.19, with $0.13 being a significant support level.
A substantial breakout requires an increase in trading volume to invalidate bearish sentiments.

WLFI Price Bearish Retest Indicates Lower Prices

WLFI Price Technical Analysis

WLFI Price Risks a Bearish Retest at $0.13 as Bullish Volume Fades - 1
WLFIUSDT (4H) Chart, Source: TradingView

WLFI's recent price trend indicates a market struggling to shift from recovery to a continuing uptrend. The primary technical obstacle is the Point of Control (POC), the level with the highest trading volume in the current range. This area is further emphasized by notable resistance on higher timeframes and the 0.618 Fibonacci retracement level, creating a complex zone of technical supply.

Up to this point, the price has not successfully closed above this resistance level. Each attempt to rise has halted before the POC, indicating that buyers may not have enough strength to withstand selling pressure. This behavior suggests that acceptance is occurring below resistance, which can often lead to downward movement rather than upward continuation.

Adding to this concern is the absence of bullish volume during the recent price bounce. Generally, healthy breakouts and trend reversals are characterized by increasing volume, which signifies strong market participation and demand. However, WLFI's recent upward movement has taken place with low volume, signaling that it might be more of a corrective move rather than a strong rally.

From the perspective of price movements, advances on low volume are prone to fail. When demand is insufficient, prices can decline once buying interest diminishes. This situation enhances the risk of a bearish movement back toward the $0.13 level, especially with the price consistently capped below both the POC and Fibonacci resistance zones. WLFI has been oscillating between a well-defined range of $0.13 (support) and $0.19 (resistance), without any significant changes to this structure.

The latest gains do not seem to disrupt this overall range. Instead, WLFI appears to be retesting the upper part of its range before facing selling pressure and pausing. As long as the POC remains unbroken, this trend supports continued range-bound trading rather than an expansion in prices. Interestingly, World Liberty Financial plans to allocate 5% of its WLFI treasury to support USD1, highlighting a contrast between the underlying fundamental adjustments and immediate technical limitations.

The Value Area Low is another critical reference point to watch. If WLFI fails to reclaim this value area, the price may revert to the lower boundary of the trading range, which is near the $0.13 level. Historically, this level has consistently attracted buyers. A decline towards this area would align with typical market auction behavior, where prices fluctuate between extreme values without a significant external catalyst.

Future Price Action Expectations

As long as WLFI remains beneath the Point of Control and the 0.618 Fibonacci resistance, the risks for downside rotation are high. Ongoing low trading volumes increase the likelihood of a move back toward $0.13, keeping the price entrenched within its broader trading range. To shift toward a bullish scenario, a high-volume retest of the resistance level is necessary to dispel the bearish retest outlook.