WLFI on the ropes: what does this signal sent by the technical indicators indicate?

The WLFI token is at a critical crossroads. After briefly reaching $0.1371 recently, the asset failed to hold and is now trading around $0.16, recording a 1.75% decline in the last 24 hours. The most concerning aspect is that it has moved away from the 20- and 50-day moving averages located at $0.14, thus losing a key level of control that the bulls needed to defend.

Technical picture: bearish pressure at critical levels

WLFI’s price structure reveals a tense situation. The token has not managed to break above the $0.14 barrier, where the mentioned moving averages converge. Every attempt has ended in a retreat, fueling the bearish narrative dominating the current sentiment.

What matters most for traders is what happens at the lower levels. The support at $0.11–$0.10 emerges as the most critical zone in the short term. This range is not arbitrary: it coincides with the 23.60% Fibonacci level and has generated effective rebounds on two different occasions this year. Market profile data support this structure, showing that the Value Area Low is precisely in this zone, creating a confluence of signals that reinforce the importance of the support.

Momentum indicators: what does this weakness signal indicate?

WLFI’s (RSI) currently stands at 38, territory suggesting an acceleration toward oversold conditions. This reading is significant because it indicates that the asset is approaching extreme levels where it has historically found stabilization. However, there is still room before officially reaching oversold levels at 30.

The message sent by these technical indicators is clear: there is room for more pressure in the short term, but support structures are prepared to potentially halt further declines.

On-chain pressure: long liquidations dominate the market

From an on-chain data perspective, WLFI is experiencing notable pressure. Approximately $143,000 in total liquidations were recorded in the last day, with a significant imbalance: $127.11 million in long positions were liquidated against only $15.89 million in shorts.

This pattern of long liquidations reflects a developing “long squeeze.” Bullish traders are being forced out of their positions, and many defensively switch to shorts, a move that typically drags prices downward before any stabilization.

Still, open interest in derivatives remains relatively stable near $213 million, showing a sideways pattern that suggests traders remain in the market but are cautious. Volatility has contracted, leaving a more expectant than anxious environment.

Mapping targets: where to watch

If WLFI manages to stabilize at the support of $0.11–$0.10, the next bullish targets would be:

• First target: Return to the moving averages at $0.14 (Fibonacci 38.20%)
• Second target: 50% Fibonacci retracement at $0.1640
• Upper resistance: Zone of $0.1666–$0.1760

On the downside, a break below $0.11–$0.10 could expose the all-time low of $0.07, last tested in October.

The broader context

WLFI has accumulated a 27.97% decline over the past year from its peak in the $1.10 territory. This prolonged weakness context explains why markets remain defensive. The token needs to demonstrate it can sustain any rebound before buyers return with conviction.

Until a clearer catalyst appears, WLFI is likely to continue fluctuating around these key levels, with liquidations and overall market dynamics as the main drivers of the price.