WLFI price plunges 30%: bearish flag signals more downside
WLFI price has plunged to $0.2230, a 30% drop from its launch high, trimming its market cap from $7.7 billion to $5.52 billion. The WLFI price downtrend follows a common price-discovery phase after airdrops and is exacerbated by early investors and insiders selling without lockups.
Historical performance of Trump-related assets also weighs on sentiment. The Official Trump meme coin and Trump Media & Technology Group stock have seen significant declines, eroding trader confidence in WLFI’s link to USD1 fund assets. Despite the fund’s $2.7 billion in assets and potential treasury yield, holders face uncertainty over tangible benefits.
On-chain charts reveal a bearish flag pattern in the WLFI price. With upcoming token unlocks worth billions, technical indicators point to further downside, with immediate support near $0.2075. Any short-term rebound may resemble a dead-cat bounce before resuming the downtrend.
Bearish
The WLFI price crash, reinforced by a bearish flag pattern and imminent token unlocks, signals sustained selling pressure in the short term. Insider selling without lockups and the typical post-airdrop price-discovery phase have already driven the token down 30% from launch highs. Historical underperformance of Trump-linked assets, such as Official Trump meme coin and TMTG stock, further dampens sentiment. Similar large-cap memecoins like Wormhole and ZKsync experienced comparable early declines, highlighting that WLFI’s volatility is consistent with launch-phase dynamics. In the near term, traders may test support around $0.2075, but any rebound looks like a dead-cat bounce rather than a genuine recovery. Over the long term, uncertainty around the USD1 fund’s benefits and potential additional supply pressure from unlocks suggest continued bearish momentum.