- 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, and its market cap fell 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 accusing it of locking his tokens.
According to Bloomberg, World Liberty received $550 million across two fundraising rounds. After the close, the project sold an additional 5.9 billion tokens, with most 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 has been 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 invested them 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 Donald Trump pardoned Changpeng Zhao.
Chances are that the World Liberty Financial project will come under more scrutiny in the coming months, especially when the Democrats retake the House of Representatives and the Senate later this year.
Meanwhile, the World Liberty Financial project is now advancing a governance proposal that will bar founders and early buyers from selling their tokens for at least 2 years, after which the tokens will unlock 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
The daily timeframe chart shows that the WLFI token price has come under pressure over the past few months, falling from a high of $0.2570 to its current price of $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 gaining 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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