WLFI Pulls Back After Treasury Rotation as Key Support Levels Come Into Focus
WLFI retreats after a treasury shift from WBTC to WETH as traders focus on key support at $0.1653 and resistance near $0.173.
World Liberty Financial’s native token, WLFI, has entered a corrective phase after a strong weekly rally, as traders react to both internal treasury adjustments and mounting technical pressure. The token declined by approximately 3.7% over the past 24 hours, diverging from its seven-day gain of nearly 16%, a move that reflects cooling momentum rather than a full reversal of trend.
The immediate catalyst behind the pullback was a strategic treasury rotation from Wrapped Bitcoin into Wrapped Ethereum. On-chain activity shows that World Liberty Financial withdrew 162.69 WBTC, valued at close to $15 million, from the Aave lending protocol. From that amount, roughly 27.12 WBTC, or about $2.5 million, was exchanged for 770.6 WETH. The transaction highlights a deliberate reduction in Bitcoin-linked exposure in favor of Ethereum, rather than a decrease in crypto holdings.
This shift suggests a reassessment of long-term positioning within decentralized finance. While WBTC provides indirect access to Bitcoin liquidity, Ethereum remains the primary infrastructure layer for smart contracts, lending protocols, and tokenized assets. By increasing its WETH reserves, World Liberty Financial appears to be aligning its treasury with the blockchain that offers broader operational flexibility and deeper integration with DeFi strategies.
Despite the strategic rationale, WLFI’s price reacted negatively in the short term. Part of the decline can be attributed to technical conditions. The token’s seven-day Relative Strength Index recently climbed to 85, a level that typically signals overbought territory. Such readings often precede profit-taking, particularly after rapid price appreciation. Once buying momentum slowed, sellers stepped in, accelerating the correction.
Key price levels are now shaping the near-term outlook. WLFI failed to hold the $0.1653 area, which corresponds closely to the 50% Fibonacci retracement of the recent rally. This loss intensified selling pressure and pushed the token toward lower support zones. Traders are now closely watching $0.1653 as an immediate support level; reclaiming and holding above this price would be critical for stabilisation.
If WLFI manages to turn bullish again, the first resistance to monitor sits at $0.1729. A decisive break above that level could reopen the path toward $0.1800, where previous selling interest has emerged. On the downside, a sustained move below $0.1619 would expose the token to a deeper retracement, with the next significant support located near $0.1570.
Beyond technicals, regulatory and political uncertainty continues to weigh on sentiment. Ongoing delays in U.S. crypto legislation, combined with scrutiny surrounding Trump-affiliated digital asset projects, have heightened investor caution. Concerns around governance structure, token concentration, and compliance remain unresolved, adding an additional layer of risk to WLFI’s short-term price behavior.
In this context, the current dip appears less like a collapse and more like a consolidation following an aggressive run-up. The treasury rotation underscores confidence in Ethereum’s expanding role, but WLFI’s next move will likely depend on whether buyers defend key support levels and restore momentum in the face of regulatory headwinds.
