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WLFI token price drops 14% amid Donald Trump statements
The cryptocurrency World Liberty Financial ($WLFI) is trading around $0.093 as of March 21. Since mid-month, the asset has lost approximately 14% of its value, declining from a local high of $0.108. This negative trend is accompanied by a sharp increase in exchange supply and a surge in loss-making transactions.
At the same time, the current decline coincides with the emergence of a new source of political risk. Recently, Donald Trump published a resonant message on the Truth Social platform. The politician threatened to deploy U.S. Immigration and Customs Enforcement agents to American airports. This statement increases macroeconomic uncertainty around the token, which is directly linked to the former president’s brand.
Asset sell-off to minimize losses
Starting from March 18, the supply of the asset on trading platforms began to rise sharply. The local peak reached $0.0475 on a normalized scale. This indicates the inflow of approximately 120 million additional $WLFI tokens onto cryptocurrency platforms. At the same time, the coin’s price fell from $0.108 to $0.093.
The relationship between these two events is direct. Moving digital assets to exchanges naturally expands the available supply for sale. Almost the entire volume of accumulated tokens was transferred within two trading days. Such a rapid inflow suggests coordinated distribution by large holders. Retail investors rarely demonstrate such synchronized behavior.
At the same time, supply remained consistently high on March 20 and 21. The asset’s price temporarily stabilized around $0.093. Therefore, selling pressure has not yet been fully exhausted.
$WLFI balance on exchanges. Source: Santiment
The project’s governance structure adds important context to the situation. Recently, network participants approved a proposal with 99.12% support. However, 76% of voting tokens came from just ten cryptocurrency wallets. This indicates a concentration of control in the hands of a small group. As a result, transfers from these addresses to exchanges have a disproportionately strong impact on market prices.
Investors locking in negative returns
Data from the Santiment analytics platform reflects a continued negative trend in the $WLFI network. The chart of daily transaction volume from February 14 to March 21 shows a clear dominance of loss-making transactions. The corresponding indicators prevail throughout almost the entire period.
The peak of financial losses occurred around February 20. On that day, total transaction volume exceeded 974 million $WLFI. The asset price was around $0.122 at that time. The second-largest spike in losses was recorded on March 7, reaching approximately 805 million tokens.
The latest significant event occurred on March 19. The volume of loss-making transactions reached about 920 million $WLFI — the second-largest figure in the analyzed period. The token price dropped to a weekly low of around $0.092.
$WLFI profit and loss transactions. Source: Santiment
The profitable volume on March 19 amounted to only 29.71 million tokens versus 16.74 million in the latest trading session. This data confirms that the vast majority of movements are occurring at a loss for investors.
Strong spikes in loss-making transfers without subsequent price recovery typically indicate a market capitulation process. However, this complex phase is not yet complete. Each such spike reflects specific investor actions: they move tokens bought at higher prices and realize losses to exit the asset. On-chain data will not confirm a sustained recovery until loss volumes decrease.
Technical analysis and downside risks
The current price of $WLFI at $0.0947 forms a classic descending wedge pattern. The structure is bounded by two converging trend lines. The upper resistance connects the January 24 high around $0.1400 with the current barrier near $0.1000. Meanwhile, the lower support extends from the February 5 low at $0.0971 to the current price.
Measuring this pattern suggests a potential decline to approximately $0.0691. This target level lies between the Fibonacci levels of 1.236 ($0.0773) and 1.382 ($0.0651).
$WLFI price analysis. Source: TradingView
The Fibonacci support structure below the current price defines a key level at 1.0 around $0.0971. The token is currently trading slightly below this level. Historically, failure to quickly reclaim this level confirms the development of a bearish trend.
A confident daily close above $0.1000 would invalidate the descending wedge. Such a move would return the short-term structure to a neutral state. Without this breakout, the pattern’s projected target and the overhang of exchange supply point to further downside. Therefore, the most likely scenario remains a move toward the $0.077–$0.069 range.
