WLFI's 33% Rally: A Short-Squeeze-Driven Bull Case and Technical Setup for $0.25

World Liberty Financial (WLFI) has emerged as a focal point of speculative fervor in late 2025, driven by a dramatic 33% price surge in a single week and a confluence of technical and on-chain signals suggesting a potential breakout to $0.25. This rally, fueled by short-liquidation dynamics and bullish momentum indicators, underscores a classic short-squeeze scenario amplified by concentrated positioning and macroeconomic tailwinds.

Short-Squeeze Catalyst: Liquidations and Whale Activity

On November 10, 2025, WLFI surged 30% to a peak of $0.17, triggering over $3.4 million in short liquidations across exchanges, with 90% of these attributed to leveraged short positions, according to a LookOnChain report. Hyperliquid, a derivatives platform, accounted for 75% of liquidations, highlighting the platform's role as a short-position hub, as reported by the same LookOnChain report. A large whale position (0x123) also recorded $430,000 in unrealized gains, reflecting aggressive long-side participation, as detailed in the LookOnChain report.

This short-squeeze was further amplified by Jump Crypto's profit-taking, which transferred 100 million WLFI tokens to Binance, causing a 6% price correction, according to a Coinrise report. Despite this, the token's volatility-marked by a 280 million-dollar surge in open interest within 24 hours, as reported by the Coinrise report-suggests lingering speculative demand.

Technical Breakout: RSI, MACD, and Fibonacci Targets

WLFI's technical profile has strengthened following its breakout above a 49-day downtrend. The Relative Strength Index (RSI) stabilized at 48, indicating neutral momentum, while the MACD histogram turned positive, signaling bullish divergence, according to a CoinMarketCap AI analysis. Crucially, the price pierced the $0.150 resistance level-a key psychological threshold-aligning with the 61.8% Fibonacci extension target of $0.240, as noted in the CoinMarketCap AI analysis.

Analysts at CoinMarketCap's AI-driven analysis tool project a $0.25 price target if WLFI sustains above $0.20, citing a "Golden Cross" in the MACD and a rising Money Flow Index (MFI) of 55.57, as detailed in a Coinotag analysis. This setup mirrors historical patterns where tokens with high short interest and concentrated liquidity experience exponential moves post-breakout.

Short-Position Concentration and Market Sentiment

Short-interest data reveals a highly concentrated bearish bias prior to the rally. Jump Crypto's 100 million WLFI holdings-valued at $15.4 million-were flagged as a potential catalyst for volatility, according to a Coinrise report. The subsequent 6% price drop after profit-taking underscores the fragility of the short base, with open interest surging to $280 million in a single day, as reported by the Coinrise report.

Meanwhile, a September token burn of 47 million WLFI tokens-aimed at stabilizing supply-has reduced circulating liquidity, potentially enhancing the impact of future buying pressure, as reported in the Coinrise report. This scarcity-driven narrative, combined with the token's association with high-profile political figures (e.g., Donald Trump), has attracted retail and institutional attention, as covered in a CoinMarketCap headline.

Price Target Validation: $0.25 as a Plausible Ceiling

While conservative models project a $0.1416 price by 2026 and $0.1722 by 2030, as noted in a Bitget price prediction, the immediate $0.25 target is supported by three factors:
1. Fibonacci Extensions: The $0.240 level aligns with the 61.8% retracement of the prior downtrend, as noted in the CoinMarketCap AI analysis.
2. Moving Averages: A sustained close above the 50-day EMA ($0.16) would validate the bullish case, as detailed in the Coinotag analysis.
3. On-Chain Metrics: The 280 million-dollar open interest surge suggests institutional accumulation ahead of a potential breakout, as reported in the Coinrise report.

However, risks remain. A retest of the $0.11 support level-where the token has previously collapsed by 62%, as noted in the CoinMarketCap headline-could derail momentum if short sellers regain control.

Conclusion: A High-Volatility Play with Defined Risks

WLFI's 33% rally represents a textbook short-squeeze scenario, driven by concentrated short positions, whale activity, and favorable technical indicators. While the $0.25 target is plausible in the near term, investors must remain cautious of Jump Crypto's residual influence and broader market sentiment. For those willing to tolerate high volatility, WLFI offers a compelling case where technical and on-chain signals converge-a rare alignment in speculative crypto markets.