WLFI's Perfect Cup and Handle Pattern: A 50% Rally Target in Sight

World Liberty Financial (WLFI) has long been a speculative asset in the crypto space, but recent technical developments suggest a pivotal moment is approaching. After months of consolidation, WLFI is forming a textbook cup and handle pattern on the 4-hour chart-a bullish continuation pattern that could propel the token toward a 50% rally. With the Chaikin Money Flow (CMF) indicator turning positive and volume dynamics showing signs of accumulation, the stage is set for a breakout that could redefine WLFI's trajectory in 2025.

The Cup and Handle: A Time-Tested Bullish Play

The cup and handle pattern is a staple of technical analysis, characterized by a U-shaped "cup" followed by a smaller consolidation phase (the "handle") before a breakout. For WLFI, the cup's depth-measured as a 28% retracement from its all-time high of $0.26 to its recent low- aligns with ideal parameters. The handle, currently forming between $0.18 and $0.23, has seen a 42% drop in trading volume over the past 24 hours, a common precursor to a breakout.

A successful breakout above the neckline at $0.23 would validate the pattern and trigger a measured move target of $0.32, calculated by adding the cup's depth. Some analysts project even stronger momentum, with price targets extending to $0.58 or $1.00 if institutional buying accelerates.

Bullish Momentum: CMF and Volume Signal Accumulation

The CMF indicator, which measures buying and selling pressure over 21 days, has turned positive in recent weeks, confirming renewed accumulation. This is critical: a CMF above zero during a cup and handle pattern historically increases the likelihood of a successful breakout. Meanwhile, 24-hour trading volume has surged 31.53% compared to the prior period, reaching $138.56 million. While volume dipped during the handle's formation, the recent rebound suggests liquidity is returning-a necessary condition for a sustained rally.

However, caution is warranted. A 42% drop in volume over the last 24 hours could indicate short-term fatigue, and the price must hold above $0.17 to avoid a breakdown. Traders should monitor volume during the breakout; a 50% spike above the 50-day average would confirm institutional participation.

The 50% rally target: Realistic or Overoptimistic?
With WLFI currently trading at $0.18 as of January 14, 2026, a 50% rally would push the price to $0.27. This aligns with the pattern's measured target of $0.32 and is supported by a secondary ascending triangle pattern on the 4-hour chart, which projects a 37% upside to $0.3287. The convergence of these patterns strengthens the case for a breakout, particularly if WLFI closes above $0.23 with robust volume.

Risks and Resistance Levels

No bullish case is complete without addressing risks. If WLFI fails to break above $0.23, the handle's support at $0.16 becomes critical. A breakdown below this level could trigger a retest of the cup's low at $0.18 or worse, a slide toward $0.15. Additionally, the token faces immediate resistance at $0.25 and $0.28, where profit-taking and technical barriers may slow momentum.

Conclusion: A High-Reward, High-Volatility Trade

WLFI's cup and handle pattern, combined with positive CMF and rebounding volume, presents a compelling case for a 50% rally. However, the trade is inherently volatile, with a narrow path to success. Investors should treat this as a high-risk, high-reward opportunity, using strict stop-loss orders below $0.17 and scaling into positions as volume confirms the breakout. If WLFI's bulls succeed, this could mark the beginning of a multi-month rally-proving once again that patience and technical discipline pay off in crypto's most unpredictable corners.