World Liberty Financial transferred 25.729 million WLFI tokens worth approximately $1.4 million to Gate, renewing concerns over persistent distribution.
The transfer followed a period in which WLFI briefly surged more than 30% in a single day before quickly reversing into another decline.
That sequence reinforced the view that large transfers continued weighing on market confidence instead of supporting recovery.
Market participants also focused on the timing because the transfer arrived while the token traded close to an established support zone.
However, the price held above the lower boundary despite renewed selling concerns. The reaction suggested buyers still defended key levels, although conviction remained limited.
Investors now watched whether additional large transfers would continue extending supply pressure or whether exchange activity would begin stabilizing.
Why did bearish traders keep dominating WLFI?
Futures positioning continued favoring downside expectations as Binance top traders maintained a bearish bias. Short accounts represented 55.36% of positions, while long accounts accounted for only 44.64%.
This produced a Long/Short Ratio of 0.81, reflecting stronger confidence among bearish traders throughout the latest session.
Such positioning aligned with the market reaction following the reported token transfer, as participants appeared reluctant to increase bullish exposure despite price stabilization.
However, the imbalance did not guarantee another sharp decline because crowded short positioning sometimes created conditions for sudden reversals.
Nevertheless, traders clearly preferred defensive positioning instead of aggressive accumulation.
The sentiment left WLFI vulnerable to further volatility while also increasing the possibility of rapid price swings whenever buying activity strengthens.
WLFI approached support as sellers weakened
At press time, WLFI traded near the lower boundary of its established consolidation range around $0.0550, while immediate support remained close to $0.0516. Resistance continued standing at $0.0632, with higher barriers near $0.0758 and $0.1000.
Price spent several weeks moving sideways after an earlier decline, showing that selling pressure gradually slowed instead of accelerating.
The Directional Movement Index also reflected changing market conditions. The +DI climbed to 26.11, overtaking the -DI at 14.95, while the ADX measured 23.42. Those readings indicated buyers regained a slight advantage, although trend strength remained weak.
As a result, WLFI would likely continue ranging unless stronger buying volume emerged.
A decisive move above $0.0632 would improve recovery prospects, while another rejection could send the price back toward $0.0516.
Final Summary
- WLFI continues facing selling pressure as bearish Futures positioning remains the dominant market theme.
- Buyers still defend key support, but reclaiming $0.0558 remains essential for stronger recovery prospects.
