AB Rallies 12% After WLFI Partnership Brings USD1 Stablecoin to AB Chain

Published: 2025-12-13 19:34:13 |

AB rallied about 12% in the past 24 hours after AB Chain announced a strategic partnership with World Liberty Finance (WLFI) to integrate the USD1 stablecoin into its DeFi ecosystem. On-chain activity and trading metrics improved: volume jumped over 53%, total holders rose to ~30.57K, and locked supply fell below 8% (around 7.46 billion AB), easing near-term unlock risk and potential sell pressure. Momentum indicators showed a waning MACD sell signal accompanying the move, though short positions still exceeded longs by roughly $565,000. Historically, AB has seen notable rebounds from similar low locked-supply conditions. Key takeaways for traders: the WLFI/USD1 integration should strengthen liquidity and DeFi utility on AB Chain, rising volume and holder growth indicate renewed demand, and reduced locked supply lowers immediate downward supply risk — factors that could support a short- to mid-term recovery if broader market conditions remain stable. Monitor open interest, short exposure, and whether sustained on-chain activity follows the integration before sizing positions.

Bullish

The combined information points to a bullish short- to mid-term outlook for AB. Positive drivers include the WLFI partnership and USD1 stablecoin integration, which improve liquidity and DeFi utility on AB Chain — factors that can increase demand for AB. Measurable on-chain improvements (53%+ volume rise, holder growth to ~30.57K) support renewed buyer interest. Critically, locked supply dropping below 8% reduces immediate risk of large scheduled unlocks and sudden sell pressure, a technical tailwind. Offsetting factors: short positions still outnumber longs by about $565,000 and mid-term momentum indicators had been favoring sellers, so the rally could be vulnerable to profit-taking or broader market weakness. For traders: news-driven entries may work for short- to mid-term positions, but risk management is essential — monitor open interest, short/liquidation dynamics, whether on-chain activity sustains post-integration, and overall crypto market direction before increasing exposure.