WLFI Token Hits All-Time Low with 83% Drop

Donald Trump-backed World Liberty Financial platform’s native token WLFI fell to its all-time low of 0.07714 dollars on Saturday. According to CoinMarketCap data, the token is currently trading at 0.08 dollars, down 83% from its September peak of 0.46 dollars, and lost 3.01% in value over the last 24 hours. The drop was triggered by wallets associated with the project depositing approximately 5 billion WLFI tokens as collateral on the decentralized lending platform Dolomite and borrowing 75 million dollars in USD1 and USDC stablecoins in return.

WLFI token down 65% over the past year. Source: CoinMarketCap

WLFI Under Pressure with 5 Billion Tokens as Collateral on Dolomite

According to Arkham on-chain data, more than 40 million of the borrowed amount was transferred to Coinbase Prime. This large collateral position has raised liquidation risk concerns among DeFi analysts. According to the WLFI detailed analysis page, the current price is trading below EMA 20 ($0.0838) and Supertrend is giving a bearish signal.

Source: Ethan DeFi

WLFI Technical Analysis: RSI in Oversold Region

Despite RSI at 29.98 being in the oversold region, the downtrend continues. Strong supports at S1 $0.0763 (83/100 score, Fibonacci and Donchian sourced) and S2 $0.0730 (52/100). Resistances at R2 $0.0783 (+1.29%) and R1 $0.0850 (+9.96%, Ichimoku and Swing High). In the near term, WLFI futures could increase volatility.

World Liberty Financial Denies Liquidation Risk

World Liberty Financial tried to calm concerns on social media by stating that their positions are well above liquidation levels and defended the strategy as helping to generate stablecoin yield. The project also announced it will propose a governance proposal including a phased unlocking program for WLFI tokens held by early retail buyers. Related tokens like ARKM and PRIME are also under pressure.