- The WLFI token price has crashed to a record low this year.
- There are concerns about World Liberty Financial’s dealings.
- Technical analysis suggests that the token will continue falling this year.
The World Liberty Financial (WLFI) token has collapsed to a record low, continuing a downward trend that started shortly after it went public in September last year. WLFI price dropped to $0.0520, down sharply from a record high of $0.2570, with its market cap falling to $1.64 billion.
World Liberty Financial Facing Major Headwinds
Donald Trump’s crypto projects are unraveling, with WLFI, TRUMP, and Melania crashing to a record low and costing investors billions of dollars over time.
The World Liberty Financial project has come under pressure after a series of negative press reports, including a major lawsuit by Justin Sun, which accused it of locking his tokens.
According to Bloomberg, World Liberty received $550 million across two fundraising rounds. After the close, the project sold additional 5.9 billion tokens, with most of those tokens going to founder-affiliated teams.
Meanwhile, experts believe that the Trump and Witkoff families have used the project to enrich themselves. A good example of this is the USD1 stablecoin, which has become a $4.4 billion behemoth.
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On paper, USD1 looks like a success as it is now one of the biggest players in the stablecoin industry. However, a closer look shows that $2 billion of these funds came from the United Arab Emirates, which used it to invest in Binance.
Investing these sums in short-term government bonds and earning 4% gives World Liberty about $80 million a year. This is one of the top reasons why Donald Trump decided to pardon Changpeng Zhao.
Chances are that the World Liberty Financial project will come under more scrutiny in the coming months, especially when the Democrats retake their House of Representatives and the Senate later this year.
Meanwhile, the World Liberty Financial project is now carrying out a governance proposal that will bar founders and early buyers from selling their tokens for at least two years, after which the tokens will begin unlocking gradually.
As a result, early investors who don’t agree will see the tokens locked indefinitely, while those who accept the vesting schedule will be required to burn 10% of their tokens.
WLFI Price Prediction: Technical Analysis
WLFI price chart | Source: TradingView
The daily timeframe chart shows that the WLFI token price has come under pressure in the past few months, moving from a high of $0.2570 to the current $0.053. It recently crossed below the important support level at $0.06830, its lowest level in October last year.
The token has crashed below all moving averages, a sign that bears remain in control. At the same time, the Average Directional Index (ADX) has jumped to 50, a sign that the momentum is gain momentum.
Therefore, the token will likely continue falling in the near term as sellers target the next key support at $0.01. On the other hand, a move above the key resistance level at $0.0683 will invalidate the bearish outlook.
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