WLFI price forms bullish pattern as USD1 growth slows and whales sell

The World Liberty Financial token price has moved sideways in the past few days as whales have dumped it and USD1 stablecoin growth has decelerated.

World Liberty Financial (WLFI) price was trading at $0.1600, a range it has remained at in the past few days. This price is ~50% above the lowest level this month.

Third-party data points to some weakness in the World Liberty network. For example, data compiled by Artemis shows that the USD1 stablecoin is not growing as it used to in the past.

The supply of USD1 stablecoins has dropped by 8.2% in the last 30 days to $2.7 billion. Most of this supply, worth over $2 billion is from MGX’s investment in Binance, the biggest crypto exchange in the world. 

The number of USD1 holders has dropped by 21% in the last 30 days to 345k, while the adjusted transaction volume has dropped by nearly 50% in the last 30 days. It has lost momentum at a faster pace than other stablecoins.

Meanwhile, more data shows that whales have reduced their positions in the past few months, reducing their holdings from 9.36 million on November 25 to 6.14 million today. Similarly, smart money investors have reduced their holdings from 855 million on November 9 to 800 million today. 

Falling smart money and whale holdings is one of the most common bearish signs in fundamental analysis. However, on a positive side, the amount of tokens on exchanges has dropped to 2.7 billion, from 3.2 billion last month.

WLFI price technical analysis 

The eight-hour timeframe chart shows that the WLFI token price has rebounded from the year-to-date low of $0.086 in October to the current $0.1600. This rebound means that it has done better than other popular tokens in technical analysis.

Another positive is that the token has formed an inverse head-and-shoulders pattern, a common bullish reversal sign in technical analysis. It has also moved above the 50-period Exponential Moving Average.

Therefore, while the WLFI price has some bearish catalysts, its technicals suggest that it has more upside to go. If this happens, the next key resistance level to watch will be at the 50% Fibonacci Retracement level at $0.2035. A drop below the support at $0.15 will invalidate the bullish outlook.