The WLFI of World Liberty Financial, a token linked to President Donald Trump, has fallen 7% over the past week, indicating an increase in bearish pressure on the market.
Data from both the spot and derivatives markets suggests that traders’ interest will wander, raising concerns that the token could revisit an all-time low of $0.16.
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wlfi tightens grip
A WLFI/USD 4-hour chart rating revealed a steady decline in token Chaikin Money Flow (CMF). This important momentum indicator is below the zero line of -0.13 and is on a downward trend at the time of this writing.
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The CMF indicator measures trading pressure by combining price and volume data. Positive CMF reads indicate strong purchasing activity and accumulation, while negative values indicate sales pressure and distribution.
The negative and downward CMF of WLFI suggests that sellers currently dominate the market. This reflects weak demand and reinforces the risk of further immersion towards an all-time low.
Furthermore, open interest in its futures has steadily declined, confirming wider negative sentiment in the market. At a press conference, it plunged 5% in the past day to $884 million.
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Open profit refers to the total number of unresolved futures contracts that have not been resolved and serves as a measure of liquidity into the derivatives market and trader participation.
The growing open interest in futures reflects increased interest in token price direction and convictions, while the decline indicates traders’ closed positions and capital in withdrawals.
In the case of WLFI, a decline in open interest fades reliability as market participants are closing trades rather than opening new ones.
WLFI under pressure – Rally above $0.16 or $0.22?
With little improvement in demand, WLFI is at an increased risk of further losses. If sales continue, the token will revisit an all-time low of $0.16 and charges will be lower if sell-offs are enhanced.
However, once new demand enters the market, Altcoin’s value could be over $0.22.
