WLFI Surges Even as Major Market Events Affect Traders

WLFI Surges Even as Major Market Events Affect Traders – Here's What You Need to Know

World Liberty Financial (WLFI) has gained 8% recently despite turbulent trading conditions. Major market players, including the WLFI team and whales, have been accumulating the token, which has reduced its circulating supply and increased demand. However, the derivatives market indicates potential for heightened volatility.

Key Takeaways

The WLFI team and significant investors (whales) have accumulated millions of tokens, which limits the circulating supply and amplifies demand.
Equal levels of liquidations for both long and short positions have created an increased risk of market volatility.
The recent price increase in WLFI occurs amid cautious sentiment in the derivatives market that may threaten these gains.

World Liberty Financial [WLFI]

Increased Demand for WLFI

In a notable move, the team behind World Liberty Financial (WLFI) is actively boosting demand for the token. Recently, they conducted a significant purchase worth $7.79 million, removing around 46.56 million WLFI from circulation. Such substantial team purchases attract investor interest as they indicate confidence in the asset and create a sense of scarcity, leading to rising demand.

WLFI team buy. Source: Arkham Intelligence

Additionally, market maker Wintermute has also made sizeable purchases, acquiring approximately $840,000 in WLFI, increasing its holdings by 505% to about $1.01 million. Reports suggest that whales have been following suit, with a total of $31.5 million worth of WLFI bought from circulation over several days.

Potential for Volatility

Despite the growing bullish sentiment, recent developments suggest that WLFI may face significant volatility soon. Liquidation data reveals that long and short traders in the Perpetual Futures market have been equally impacted, with combined liquidations reaching $1.09 million.

On November 25th, about $443,120 was lost by short traders, while long traders incurred slightly higher losses at approximately $444,200.

WLFI liquidation statistics. Source: CoinGlass

This balance of liquidations places WLFI in a precarious position, where any significant movement could trigger a wave of liquidations in either direction. Additionally, current sentiment in the spot and perpetual markets is bearish, with $2.6 million worth of WLFI sold by retail traders over the last 48 hours. The Open-Weighted Funding Rate remains negative at -0.0139%, indicating that traders are leaning towards a downturn.

Trends to Monitor

The Liquidation Heatmap has revealed dense clusters of liquidity positioned below WLFI's current price, which historically serve as attractions during volatile trading periods.

WLFI liquidation heatmap chart. Source: CoinGlass

If selling pressure intensifies, these liquidity zones could lead to a price drop in WLFI. However, continuous accumulation by whales and further team purchases may help counteract this pressure, supporting upward momentum and potentially pushing WLFI higher on the charts.