WLFI is facing turbulent times with significant selling pressure. Despite a $7 million buyback, around $190 million in positions have been liquidated, raising doubts about reversing the bearish momentum. Investors are closely monitoring for early signs of stabilization amidst this uncertainty.
Market data shows WLFI facing massive capitulation from holders. Sales volume has reached $190 million, creating unprecedented downward pressure on the token price. This massive liquidation can be explained by several converging factors: deteriorating market sentiment, absence of positive catalysts, and likely cascading triggers of stop-losses.
The announced buyback program of $7 million represents barely 3.7% of the sold volume. This imbalanced ratio raises a fundamental question about the effectiveness of this measure. Under normal market conditions, a buyback can effectively create a technical support and signal the team’s confidence in the project. But facing such an avalanche of sales, the impact remains marginal.
Market makers and whales are closely watching the project’s ability to absorb this pressure. If the buyback is executed gradually without creating a volume spike, it risks going unnoticed in the continuous flow of sales. Transparency around the execution of this buyback therefore becomes crucial to maintain minimal confidence within the community.
With growing enthusiasm and strong media visibility, WLFI is attracting the attention of investors looking for speculative opportunities. Its price around $0.22 could represent, according to some analysts, a good entry point before potential announcements or a rebound in the crypto market.
Here’s a buying guide on Bitget:
WLFI’s price action shows a progressive deterioration of its technical structure. Bears clearly control the momentum, pushing the token towards historical support zones. Each rebound attempt results in a new wave of selling, creating a classic descending pattern that frightens potential buyers.
Volume indicators confirm this bearish dominance. The buyer/seller ratio leans heavily towards the bears, with volume spikes consistently coinciding with price drops. This technical signature indicates aggressive distribution rather than simple consolidation.
The RSI has been evolving in oversold territory for several sessions, but unlike classic technical rebound situations, no bullish divergence is forming. Moving averages display a perfect bearish alignment, with death crosses multiplying across different timeframes. The current support zone represents the last bulwark before a test of historical lows.
The current situation places investors in front of a complex strategic dilemma. Maintain a position in the hope of a reversal, or cut losses in the face of evident persistent bearish momentum? Order book analysis reveals fragile liquidity with non-existent bid walls and massive ask walls blocking any recovery attempts.
Crypto projects experiencing such crises typically require much more than a simple buyback to restore confidence. Concrete announcements, strategic partnerships, or major technological developments are needed to reverse sentiment. Without these catalysts, the $7 million buyback risks being diluted in the ocean of sales without lasting impact.
Experienced traders are adopting a wait-and-see approach, waiting for stabilization signals such as a drastic reduction in sales volume or the appearance of bullish divergences on indicators. Patience and strict risk management remain the best allies in this type of hostile environment, where each rebound could be a bull trap.
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