WLFI Extends Downtrend with 6% Drop, But Technicals Hint at a Potential Bottom

• $WLFI drops again as long liquidations spike, yet support near $0.11 starts to regain attention.
• Treasury debate fuels pressure while clustered technical signals form near a likely support zone.
• Market fear rises, and $WLFI edges toward a band that halted two declines earlier in the year.

The $WLFI token extended its multi-week decline on Thursday, falling another 6% as a mix of market fear, leveraged liquidations, and governance uncertainty kept pressure on the token. The drop adds to a deeper weekly pullback of roughly 12%, continuing a downtrend that began after the September peak near $0.25. Still, a cluster of technical markers is beginning to gather near a familiar support zone, offering the first signs of potential stabilization.

Extended Selling Pressure as $WLFI Breaks Below Key Moving Averages

The token’s slide has kept it pinned below key short-term moving averages, reinforcing a trend that traders have struggled to counter. The 20-day sits near $0.1474, and the 50-day is slightly lower at $0.1434, both positioned above $WLFI’s latest print around $0.1281.

That arrangement tends to show momentum leaning decisively toward sellers. Derivatives data echoes the same direction. Long-side liquidations spiked to about $3.31 million over the past day, according to CoinGlass, while short liquidations barely moved, totaling only $6.69K.

Source: CoinGlass

The imbalance suggests that long positions continue to get forced out during sharp moves, which usually leaves traders retreating into lower-risk stances and, in some cases, flipping into shorts simply to avoid further damage. Similarly, funding rates haven’t budged out of negative territory either.

Source: CoinGlass

At press time, the weighted rate stands at -0.0310, a level that signals short sellers are paying to keep their positions open. That pattern has lingered since early November and has become one of the more persistent features of $WLFI’s recent bearish trading landscape.

Treasury Proposal Splits Community and Adds a Second Layer of Pressure

The $WLFI’s internal governance debate has only deepened the tension. The team proposed using 5% of its treasury to drive new adoption of $USD1, its dollar-pegged stablecoin. As per the report, the funds would support partnerships across centralized and decentralized markets and were pitched as a way to strengthen $USD1’s position.

But early reaction hasn’t leaned in the team’s favor. Roughly 53% of initial voters rejected the plan, citing concerns about treasury discipline and the strain that additional token unlocks could place on an ecosystem already managing 26.7 billion $WLFI in circulation.

Other holders questioned whether the team should prioritize $USD1 expansion when the stablecoin’s roughly $2.7 billion footprint still trails larger competitors such as PYUSD. However, the vote closes on December 19. Until then, traders appear reluctant to commit to major positions, leaving $WLFI more exposed to wider market swings.

Macro Environment Turns Risk-Off as Bitcoin Dominance Rises

On the other hand, $WLFI’s struggles are unfolding in a broader environment marked by hesitation. The Fear & Greed Index stands at 22, reflecting “Extreme Fear,” while Bitcoin’s dominance now sits at 59.4%. Such sentiments hint that capital is rotated toward the market’s most liquid asset, often at the expense of smaller tokens.

Source: CoinMarketCap

The total crypto market slipped only 0.46% in the past 24 hours, but $WLFI’s sharper 6% drop placed it among the weaker performers. This type of environment typically amplifies the impact of internal disputes or a weak technical posture. With risk appetite fading, traders tend to avoid assets with unresolved governance narratives or inconsistent liquidity.

Related: XRP Price Stalls at $1.80 Key Support: Freefall Ahead or Fresh Bounce?

Technical Confluence Points to a Possible Bottom Near $0.11–$0.10

Even so, the chart is nearing a band that has stopped sell-offs before. The $0.11–$0.10 region has generated rebounds twice this year, and $WLFI is inching back toward it again. The zone lines up with the 23.60% Fibonacci level, which adds a bit of structure for traders looking for any sign of stabilization.

Market-profile data support the same range. $WLFI has now traveled from its Value Area High, through the Point of Control, and eyes the Value Area Low, positioned right inside that $0.11–$0.10 pocket, creating a stack of overlapping support signals.

Source: TradingView

When multiple frameworks point to the same landing zone, traders tend to take note, even in a downtrend this steep. Besides, momentum readings are approaching their own limits. The RSI is parked around 32, near oversold territory. While not a guarantee of reversal, readings in this neighborhood frequently accompany slower downside follow-through.

For now, $WLFI remains under clear pressure. Yet for the first time in weeks, several unrelated indicators are pointing to the same zone. Traders watching for a potential bottom are likely to focus squarely on whether the $0.11–$0.10 level holds in the days ahead.