On Thursday, February 5, World Liberty Financial (WLFI) is continuing its decline and is trading at $0.1281, decreased by 5.89% in the past day. The token has lost 20% over the last week. The market capitalization is currently at $120.07 million, according to CoinMarketCap data.
Source: CoinMarketCap
Analysts are now observing that WLFI is facing increasing pressure, with its trend still bearish in the daily chart. The token is now down 78% from its all-time high price of $0.4780. Traders are closely monitoring the current price zone.
WLFI Faces Key Resistance and Breakdown Risk
Analyst Crypto Patel pointed out that WLFI is currently in a bearish structure. A bounce in this zone is expected to reach a resistance zone of $0.18 to $0.20.
He also pointed out that a breakout in this zone would mean that WLFI is ready to move to higher price zones. A move above this zone with sufficient trading volume is required. A confirmed candle close is also required.
Source: X
The bearish case is quite straightforward. A break below the $0.113 support zone is expected to result in further losses. The price is expected to reach a zone around $0.07.
Open Interest Drops as WLFI Market Activity Reduces
CoinGlass data shows that the volume is currently down 20.60% to $275.57 million. Additionally, open interest has dropped by 6.36% to $176.46 million. The OI-weighted funding rate stands at -0.0002%.
Source: CoinGlass
Also Read: XRP Drops 10% as On-Chain Indicators Warn of Extended Downtrend
EMAs and Bollinger Bands Confirm Ongoing Bearish Pressure
From a technical perspective, it is clear that the Exponential Moving Average levels are a clear indicator of sustained downward momentum. The EMA-20 is at $0.1494, and the EMA-50 stands at $0.1541.
The EMA-100 is currently at $0.1553. The EMA-200 sits at $0.1583. All of these EMAs are above the current price, a clear indicator that WLFI is below its trend resistance.
The distance between the EMAs and the current price indicates diminishing strength. The trend will remain negative until WLFI moves above the EMAs. The indicator indicates sustained pressure.
The Bollinger Bands (BB) show that the bands have become constricted. The upper band is at $0.1882. The middle band sits at $0.1553. The lower band is at $0.1224. The token is currently trading near the lower band. This indicates low volatility and sustained pressure.
Source: TradingView
Cryptocurrency is still under heavy bearish pressure as the price is close to an important support area. The technical indicators reflect weak momentum. The next move depends on whether the token can defend support or break lower into a deeper decline.
Also Read: WLFI Faces Crucial Test as Bulls Target Explosive $0.16 Breakout
