Key Takeaways
What drove WLFI’s price rally?
WLFI broke out of a 49-day downtrend, gaining 33% as a bullish MACD crossover confirmed rising buying pressure and renewed market interest.
How are World Liberty Financial traders responding?
Shorts face over $3.4 million in liquidations, and holding above $0.20 could push WLFI toward its $0.25 resistance zone.
The broader market is showing signs of recovery, and World Liberty Financial [WLFI] is leading today’s gainers. The token climbed over 33% in 24 hours, reclaiming key resistance levels on strong trading momentum.
The momentum appeared to be strengthening, with technical indicators suggesting that bullish investors could be returning to the market once again.
Rally breakout sparks interest
WLFI broke out of a descending diagonal resistance that held for 49 days. The move confirmed a technical reversal, setting the next upside target near $0.25 — the upper bound of its previous channel.
Source: TradingView
A rally to this level marks WLFI’s highest trading point since the 22nd of September, with momentum likely determining whether the altcoin sustains further gains.
However, a breakdown from this level could send WLFI back below the resistance trendline, pushing prices lower to find support around $0.11 on the chart.
Bullish movement is strong
The bullish momentum still appeared to have room to strengthen, according to recent technical readings.
The Moving Average Convergence Divergence (MACD) indicator flashed a bullish signal as it formed a Golden Cross pattern. This occurs when the blue MACD line crosses above the orange signal line, suggesting that buying momentum is returning and that WLFI could reenter the bullish region.
Notably, the MACD sat on the bearish side of the market, which indicates that there remains significant potential upside if the current trend continues.
Source: TradingView
Meanwhile, the Money Flow Index (MFI) rose to 55.57, showing renewed inflows. An upward MFI trend implies investors are reallocating liquidity toward WLFI, which could strengthen the ongoing recovery.
Shorts face liquidation risk
Short traders in the Derivatives market were under pressure, as many were being squeezed out of their positions.
Data from CoinGlass showed that investors who opened short contracts on WLFI in the past 24 hours suffered the largest losses, with forced liquidations totaling about $3.45 million.
Source: CoinGlass
The Liquidation Map further indicated that as WLFI continues to rally, even more positions could be liquidated.
For example, a move to $0.184 would trigger about $3.91 million worth of contracts, while a rally to $0.168 could add another $2.46 million in potential liquidations—forcing additional short traders into loss.
