Donald Trump-linked World Liberty Financial [WLFI] has recorded an impressive 23% jump after the United States military succeeded in capturing Venezuelan President Nicolás Maduro.
Although the price has moved sideways over the past 24 hours, price action suggested that WLFI has strong potential to extend its upside momentum in the coming days.
As of press time, WLFI gained 0.70% and traded near the $0.172 level. Despite the recent gains and bullish price action, market participation remained hesitant, as reflected in trading volume, which dropped 67% to $128.25 million.
WLFI price action and technical analysis
According to AMBCrypto’s technical analysis, WLFI has cleared one of its key resistance levels at $0.166. In fact, it had been facing since October 2025. However, the recent sideways momentum suggested that the token may be retesting the breakout level before the next leg up.
If WLFI remains above the $0.166 level, there is a strong possibility that the price could soar by 28% and reach the $0.22 level. On the other hand, if momentum fades and the price falls below the $0.16 level, this bullish outlook could be invalidated.
As of this writing, the Average Directional Index (ADX), a momentum indicator that measures trend strength, rose to 26.61. In fact, that was above the key threshold of 25, indicating that WLFI had a strong directional trend.
Meanwhile, the Relative Strength Index (RSI) showed that the token was in overbought territory. That, in turn, suggested a high likelihood of a price reversal.
Are investors and traders turning bearish?
Despite the bullish price action, investor and trader sentiment continued to raise concerns.
According to CoinGlass data, WLFI’s Spot Inflow/Outflow metric recorded a massive $3.28 million in inflows over the past 24 hours, indicating potential sell-off preparation. Notably, such inflows have been recorded for three consecutive days.
Meanwhile, intraday traders also followed a similar trend.
The latest data showed that WLFI traders were overleveraged, with a lower limit of $ 0.168 and an upper limit of $0.177. At these levels, traders had built $2.55 million worth of long-leveraged positions and $3.01 million worth of short-leveraged positions.
This activity by traders and investors appears to be a red flag. It suggests that both long-term and short-term sentiment remain bearish.
Final Thoughts
- WLFI’s rally pushed through a key resistance level, supported by strengthening trend momentum.
- However, falling volume, rising exchange inflows, and leveraged positioning pointed to hesitation among both traders and investors.
