World Liberty Monetary (WLFI) is down practically 8% over the previous 24 hours, displaying weak point after the USD1 shock. The Trump-Household-linked stablecoin weakening triggered panic throughout the ecosystem, and its results on the WLFI value are nonetheless lingering.
This drop comes at a important time as a result of WLFI had been constructing a bullish breakout sample. Now, with whales shopping for and promoting stress fading, the token sits at a decisive level.
Mar-A-Lago Rally Fades As USD1 Shock And RSI Divergence Set off WLFI Pullback
WLFI’s current volatility started with the Mar-A-Lago crypto occasion. Between February 16 and February 18, the worth surged 32%. This rally shaped the cup portion of a cup-and-handle sample, which is a bullish setup the place value bounces, pauses, drops, after which makes an attempt a breakout.
Nonetheless, warning indicators appeared earlier than the drop.
The Relative Energy Index (RSI), which measures momentum energy on a scale from 0 to 100, began rising between February 3 and February 18 at the same time as WLFI’s broader pattern remained weak. This created a hidden bearish divergence.
WLFI Worth Construction: TradingView
Hidden bearish divergence occurs when momentum rises, however value fails to substantiate energy. It usually alerts {that a} rally might fail and result in a pullback.
That pullback intensified after WLFI’s stablecoin, USD1, briefly weakened, probably because of a coordinated assault.
A coordinated assault was launched towards USD1 this morning. Attackers hacked a number of WLFI cofounder accounts, paid influencers to unfold FUD, and opened huge $WLFI shorts to revenue from the manufactured chaos.
It didn’t work.
Because of USD1’s sound mint-and-redeem mechanism…
— WLFI (@worldlibertyfi) February 23, 2026
Leverage Flush And $35 Million Whale Shopping for Reveal Hidden Accumulation
The sharp drop was intently tied to leverage liquidation relatively than long-term traders exiting.
Leverage permits merchants to borrow cash to extend place dimension. The funding price exhibits whether or not leveraged merchants are betting on value will increase or declines. By February 18, when the WLFI value peaked amid optimistic Mar-A-Lago sentiment, open curiosity surged to just about $245 million.
After February 18, WLFI’s funding price turned detrimental whereas open curiosity dropped sharply.
This mixture confirms a leverage flush. A leverage flush occurs when bullish positions are forcibly closed, inflicting speedy value declines with out actual promoting from long-term holders.
On the identical time, whales started shopping for.
The most important WLFI holders, wallets holding over 1 billion tokens, elevated their holdings from 8.23 billion to eight.56 billion WLFI beginning February 19. This implies they accrued about 330 million WLFI. At present costs, that equals roughly $35 million in shopping for.
This accumulation occurred whereas the worth was falling, which normally alerts confidence in future restoration. It additionally takes the blame away from spot dumping.
Retail promoting additionally seems to be slowing. Alternate inflows, which measure what number of tokens traders ship to exchanges to promote, dropped sharply. On February 19, inflows have been 128 million WLFI. They’ve since fallen to only 8.9 million WLFI, down virtually 93%. Decrease inflows recommend fewer traders try to promote.
Collectively, these alerts present the World Liberty Monetary token’s value drop was largely pushed by liquidations relatively than true investor exit.
Sentiment Recovers, However Important WLFI Worth Ranges Now Floor
Investor sentiment additionally displays this shift. Optimistic sentiment round WLFI had already been falling earlier this month as costs declined. It briefly recovered in the course of the Mar-A-Lago rally however dropped once more after the USD1 shock.
Since February 22, sentiment has began rising once more from close to zero ranges. This restoration exhibits confidence is stabilizing as panic fades.
Nonetheless, sentiment stays far under earlier highs seen in early February, round 21, and in the course of the current Mar-A-Lago rally, the place the rating hit 11. This blended sentiment now displays instantly in WLFI’s value construction.
WLFI now sits at a important technical stage. To verify a breakout, not only a restoration, the worth should transfer above $0.125. This stage represents the neckline of the cup-and-handle sample. Breaking above it might affirm energy and will push WLFI towards $0.166 and probably $0.200 if shopping for continues.
Nonetheless, draw back dangers stay. If WLFI falls under $0.101, the sample would weaken considerably. A drop under $0.095 would invalidate the bullish setup utterly and sign deeper draw back.
For now, WLFI’s current drop seems to be pushed extra by leverage liquidations than by true promoting.
Whale accumulation and falling trade inflows present robust arms are nonetheless positioning. Whether or not this Trump-Household-linked token breaks out or breaks down now is dependent upon whether or not patrons can reclaim key resistance and restore confidence after the USD1 shock.
