WLFI Token Faces Sharp Decline Amid Market Uncertainty
World Liberty Financial (WLFI)token experienced a significant price drop,falling to $0.2230. This marks a 30% decline from its highest point since launching. Its market cap has dropped from $7.7 billion to $5.52 billion.
Several factors contribute to this downturn. Firstly, new coins like WLFI typically see price falls following airdrops due to the price-discovery phase. For example, Wormhole lost 17%, and ZKsync plummeted by 30%.
Secondly, early WLFI investors might be cashing out. In crypto markets, early buyers and insiders can sell immediately, unlike the stock market where lockups apply.
Moreover, assets linked to Donald Trump struggle in the long term. The TRUMP meme coin surged to $49.25 in January but now stands at just $8, losing immense value. Trump Media & Technology Group shares also dropped 70% from their peak this year.
- Uncertain benefits of USD1’s dollar reserves for WLFI holders.
- USD1 holds $2.7 billion in assets, potentially yielding $110 million if invested in 10-year U.S. Treasuries.
The WLFI price chart reveals a bearish flag pattern likely leading to further declines. The coin could temporarily rebound in a dead-cat bounce, a short-term rise followed by a continued fall. The $0.2075 mark might potentially be the next key level to monitor.
