Institutional Buys Clash with Whale Selloff as WLFI Nears Make-or-Break Support Level

World Liberty Finance's (WLFI) token has experienced a 15% price decline, with liquidity outflows totaling $82 million in recent weeks. The drop follows a significant withdrawal of 11 million WLFI tokens by a whale, valued at $2.15 million, which triggered concerns about the token's ability to hold key support levels. According to on-chain data from Coinglass, the liquidity outflows have reduced the total value locked (TVL) in WLFI-related protocols to approximately $630 million, exacerbating bearish sentiment. The price has fallen below $0.20, with traders closely monitoring the $0.188 support level, which has historically served as a critical floor for rebounds. Failure to hold this level could open the path to further declines toward $0.17 or even $0.157, analysts warn.

Institutional activity has provided a counterbalance to the short-term sell-off. Major crypto platforms, including Robinhood, Bitget, and Bitpanda, have collectively accumulated over $30 million in WLFI over the past week, according to Arkham Intelligence. These moves suggest growing confidence in the token's long-term potential despite its recent volatility. Additionally, the Funding Rate for WLFI remains positive at 0.0033%, indicating that traders are paying to hold long positions, a bullish signal in perpetual markets. However, retail investors have grown cautious, with 4% shifting from bullish to bearish positions on CoinMarketCap, reflecting broader market uncertainty.

Technical indicators point to a possible recovery if WLFI stabilizes above $0.188. Liquidation maps from Coinglass show a concentration of long positions at $0.18, aligning with historical support. A successful rebound could push the price toward $0.193, with subsequent resistance levels at $0.20–$0.21. Analysts note that reclaiming $0.20 would signal strength, potentially propelling the token toward $0.25-a 27% gain from the current support level. Conversely, a breakdown below $0.188 could trigger a sharp decline to $0.17, with risks of further losses to $0.157 if bearish momentum intensifies.

World Liberty Finance has proposed a token burn initiative to reduce circulating supply and bolster long-term value. The plan involves using fees from liquidity pools to repurchase and burn WLFI tokens, a strategy aimed at increasing scarcity and ownership concentration for long-term holders. While the move has been welcomed by some as a positive step, others remain skeptical, citing concerns about potential insider activity and price manipulation. Critics have highlighted the token's political ties, particularly its association with Donald Trump's son, as a risk factor, with some labeling the project a "pump and dump" scheme.

The broader market context adds complexity to WLFI's outlook. The token's performance is intertwined with the "Uptober" phenomenon, where cryptocurrencies historically see gains in October. Bitcoin's average monthly returns during this period are around 22%, which could create a favorable environment for WLFI if broader sentiment improves. However, macroeconomic factors and regulatory scrutiny remain wild cards. The launch of USD1, a stablecoin on the Aptos blockchain, is expected to add utility and stability to WLFI's ecosystem, though its impact on price remains to be seen.

Market participants are divided on the token's trajectory. Optimists cite institutional accumulation, a positive Funding Rate, and technical support levels as catalysts for a rebound. Skeptics, however, emphasize the risks of concentrated whale activity and short-term volatility. As WLFI navigates this critical juncture, the coming weeks will likely determine whether the token can regain buyer confidence and stabilize its value.

Source: [1] Invezz (https://invezz.com/news/2025/09/30/wlfi-price-nears-key-support-amid-2-5m-liquidity-withdrawal-whats-next/)

[2] The Bit Journal (https://thebitjournal.com/wlfi-price-plunges-on-82m-liquidity-drain-whales/)

[3] Codeum (https://codeum.org/news/wlfi-price-whale-accumulation-rebound)

[4] InsideCrypto (https://insidecrypto.net/wlfi-seeks-a-rebound-aggressive-whale-accumulation-activates-on-chain-signals/)

[5] The Cryptocurrency Post (https://thecryptocurrencypost.net/wlfi-seeks-rebound-as-whales-intensify-accumulation/)