WLFI Price Shows Hidden Bullish Divergence, Aiming for $0.18

Summary:
World Liberty Financial (WLFI) is exhibiting a hidden bullish divergence after reclaiming a crucial level known as the point of control. This shift in market structure indicates a potential upward movement towards the resistance level of $0.18. The recent improvements in momentum and volume dynamics are significant, suggesting a continued bullish trend if the price can maintain its position above key levels.

Key Takeaways

WLFI has formed a hidden bullish divergence, which usually indicates a bullish trend continuation.
The asset is showing a transition from a neutral to a bullish market structure.
Volume dynamics are supportive of the bullish trend, as WLFI accumulates above the point of control.
A move towards the $0.18 resistance level is likely if the upward momentum persists.

WLFI price hidden bullish divergence suggest rally incoming

Market Momentum Shift for WLFI

WLFI price forms hidden bullish divergence, eyeing a move toward $0.18 - 1 WLFIUSDT (6H) Chart, Source: TradingView

World Liberty Financial (WLFI) is showing a significant surge in technical momentum after successfully reclaiming and retesting its point of control. This retest has confirmed the level's strength and additionally validated a hidden bullish divergence visible in the Relative Strength Index (RSI).

A hidden bullish divergence occurs when the price forms a higher low while the RSI shows a lower low. This phenomenon indicates that strong underlying momentum persists despite short-term pullbacks. Generally, this setup forecasts continuation rather than a reversal and is regarded as a strong trend strength indicator.

The recent formation of this divergence aligns with a larger transformation in market structure. WLFI has recorded consecutive higher highs and higher lows, signaling a transition from a downtrend into an upward continuation phase.

This shift follows World Liberty Financial's recent decision to burn and reallocate $22.1 million in WLFI after experiencing a wallet breach prior to its launch. This action has helped restore market confidence without negatively impacting the emerging bullish structure. Such structural changes are typically viewed as reliable indicators of growing bullish momentum. As long as price action stays above the 0.618 Fibonacci retracement level, the bullish outlook will remain intact.

Bullish Volume Dynamics

The volume dynamics are further supporting the bullish outlook for WLFI. Currently, WLFI is consolidating above the range point of control, an action that usually relates to accumulation and preparing for upward continuation.

Rising volume on the upside signifies increased market participation and heightened interest from buyers. Ongoing expansion in volume will be crucial for confirming a breakout and maintaining momentum through the resistance levels above.

It’s essential to grasp why hidden bullish divergences hold significant importance in technical analysis. Unlike standard bullish divergences, which typically occur at the ends of downtrends, hidden bullish divergences manifest during active uptrends. These divergences indicate that the market is likely gearing up for another impulse move in the same direction as the prevailing trend.

Recent developments show WLFI surged by 15 percent due to excitement surrounding the Trump–CZ pardon news, underscoring buyers' readiness to absorb sell pressure. In WLFI’s instance, the divergence further supports the idea that buyers are positioning themselves for continued upward movement instead of a market reversal.

Anticipated Price Movements Ahead

If WLFI can maintain itself above the point of control and breach the value area high with increasing bullish volume, an accelerated move towards the resistance level of $0.18 appears likely. The hidden bullish divergence strengthens the trend continuation, but volume confirmation will remain vital for sustaining momentum.