World Liberty Financial (WLFI) Surges 12% Amid Whale Accumulation

World Liberty Financial (WLFI) Surges 12% Amid Whale Accumulation—Reaching $0.18 Only If...

World Liberty Financial (WLFI) has recently experienced significant market activity, particularly due to whale investors accumulating substantial amounts of tokens. This movement, combined with technical indicators showing recovery, has sparked interest among traders. However, increasing sell pressure poses a risk for further gains.

Key Takeaways

WLFI whales have gathered nearly 300 million tokens as the price has reclaimed the EMA20 and EMA50 moving averages.
A positive Spot Netflow indicates stronger selling activity, which increases the likelihood of a price pullback towards EMA20 support.
After weeks of decline, the broader market appears to be stabilizing, with WLFI among the mid-caps showing signs of recovery. This shift has attracted whale investors looking to capitalize on a potential trend reversal.

Whales on a Buying Spree for WLFI

Whale investors have resumed their interest in World Liberty Financial (WLFI) after a brief pause in the market. According to data from Lookonchain, a new wallet (0xd947) withdrew 47.18 million WLFI, valued at $6.95 million, from Binance.

WLFI whale transaction Source: Lookonchain

Additionally, another whale acquired 165.79 million WLFI worth approximately $25 million over the course of three days. Combined, these two whales accumulated a total of $31.95 million in WLFI. Typically, substantial whale accumulation during uncertain market conditions indicates confidence in the asset’s future.

Moreover, the trend of whale purchases is not isolated. Data from Nansen reveals that in the last 24 hours, top holders added 178 million WLFI to their portfolios. In total, over a three-day period, whales amassed 298 million WLFI, reflecting a strong demand even when the market is volatile.

WLFI top holders Source: Nansen

Historically, heightened whale influxes lead to upward price pressure by constraining the circulating supply of tokens.

WLFI Team Reduces TRX Holdings

Interestingly, while whale activity has ramped up, the World Liberty Financial team has been decreasing their exposure to other assets. As per data from Onchain Lens, the team deposited 40.59 million TRON (TRX), valued at $11.25 million, into HTX. Originally, these tokens were purchased for $9.94 million, resulting in a realized profit of $1.4 million.

World liberty finance TRX deposit Source: Onchain Lens

When project teams liquidate secondary assets, it often indicates that they are managing liquidity through different avenues without selling their own tokens. This strategy typically reflects confidence in their primary asset, serving as a neutral-to-bullish signal for WLFI holders.

Price Recovery Faces Resistance

WLFI has shown some signs of recovery, registering four consecutive higher closes after hitting a low of $0.11. The token has recovered to reclaim both the EMA20 and EMA50 moving averages, which strengthens the potential for upward momentum.

Currently, WLFI is trading at $0.157, reflecting a daily increase of 0.85% and a weekly rise of 12.3%.

WLFI EMA & DMI Source: TradingView

The Directional Movement Index indicated a bullish crossover on November 24, showing a positive index at 20.67, higher than the negative index at 15.49. However, bulls must maintain this structure to ensure continuation.

A close above the EMA50 at $0.1524 is essential to sustain momentum and pave the way toward the target of $0.18. Nevertheless, a positive Spot Netflow may signal increased selling pressure. Current data from CoinGlass shows a positive Netflow of $1.66 million, contrasting with a negative $500,000 the day prior. Should selling pressure rise, WLFI might revisit the EMA20 support level at approximately $0.1439.

World Liberty Finance Spot netflow Source: CoinGlass