WLFI's Bearish Price Retest at $0.13: Declining Bullish Volume Signals Weakening Investor Conviction

World Liberty Financial (WLFI) has long been a speculative asset in the cryptocurrency market, but recent price action around the $0.13 support level suggests a critical inflection point. While some technical indicators hint at potential bullish momentum, the broader narrative is one of waning investor conviction, underscored by declining trading volume and bearish structural patterns. This analysis dissects the data to explain why WLFI's near-term trajectory remains precarious.

Technical Analysis: Bearish Structure Prevails

WLFI's price action near $0.13 has been a focal point for traders, but the technical outlook is mixed. On the 4-hour chart, the asset appears to be forming a cup-and-handle pattern-a bullish formation that could propel WLFI toward $0.23 if it breaks above resistance according to analysis. However, this optimism is undermined by the broader bearish context. The price remains below the full EMA stack, with key resistance layers between $0.135 and $0.145 acting as a ceiling according to market data.

A critical red flag is the recent bounce from $0.13, which occurred on declining volume. According to a report by TradersUnion, this weak volume suggests "fragile stabilization" rather than genuine bullish conviction according to analysis. The Relative Strength Index (RSI) further corroborates this, hovering below the 50-level-a threshold typically associated with bearish momentum according to market data. While the RSI has edged into the upper-40s, this is more indicative of exhaustion than a reversal.

Volume Trends: Mixed Signals Amid Stabilization

Volume trends around the $0.13 level reveal a tug-of-war between buyers and sellers. A recent buyback of 46.56 million tokens by WLFI's team briefly spurred a 13% rally, pushing the price to $0.161 according to market data. This event, while positive, was followed by a sharp pullback, highlighting the fragility of demand.

Data from TradingView indicates that spot flows remain mixed, with persistent net outflows historically dominating the landscape according to analysis. A rare exception-a modest positive inflow-has yet to translate into sustained bullish momentum. The 20-period and 50-period EMAs (at $0.131 and $0.137, respectively) reinforce the bearish bias, as the price struggles to close above these critical levels according to market data.

Investor Sentiment: A Tale of Two Narratives

Investor sentiment is similarly divided. On one hand, the recent buyback and falling wedge patterns suggest short-term optimism according to market analysis. On the other, long-term projections hinge on liquidity improvements and regulatory clarity-factors that remain uncertain according to market data. Analysts caution that WLFI's price could consolidate or experience volatility if the $0.13 support fails to hold according to market analysis.

While some bullish market structures are intact, the lack of sustained volume growth signals a lack of institutional or retail participation. As noted by Crypto.News, "the weakening volume during the $0.13 bounce increases the risk of a bearish retest" according to market data. This is particularly concerning given the token's history of failing to reclaim key resistance levels like the Point of Control and 0.618 Fibonacci retracement according to market analysis.

Conclusion: A High-Risk Scenario for WLFI

WLFI's near-term outlook is best characterized as "fragile but stabilizing" according to market data. The $0.13 support level remains a critical psychological barrier, but the absence of robust volume and the bearish EMA alignment suggest a retest of this level is likely. A sustained 4-hour close above $0.135 could signal weakening downside control, but such a move has yet to materialize according to market analysis.

For investors, the key takeaway is clear: bullish conviction is waning, and WLFI's price action is more likely to trend lower in the short term unless there is a surge in buying volume and a breakout above $0.23. While long-term projections remain optimistic, the immediate risks are skewed to the downside.