The World Liberty Financial (WLFI) altcoin experienced significant volatility, dropping to $0.15 before rebounding to $0.18 and settling near $0.16. This movement coincided with a major transfer of 235 million WLFI tokens, valued at $40.63 million, from a team wallet to Binance. On-chain data indicates this has increased selling pressure, with key metrics turning negative and the price declining over 6% as market participants reacted to the movement.
The altcoin World Liberty Financial (WLFI) traded at $0.1641, marking a 6.21% daily decline after recent volatility. Earlier price action saw WLFI rebound from a low of $0.15 to a high of $0.18 before retracing lower.
A significant market shift occurred as a team wallet deposited 235 million WLFI, worth $40.63 million, into Binance. According to Onchain Lens, this was the wallet’s first deposit since the token’s launch.
One crypto analyst, 0xShonkovich, suggested the transfers are likely an airdrop for USD1 holders. Despite that, holders and traders could interpret the transfers as bearish, leading to panic-selling.
Market sentiment shifted bearish on January 26, with WLFI’s Spot Netflow turning positive at $5.18 million. This metric suggests most traders increased exchange deposits, a sign of increased selling activity.
World Liberty Financial top holders also increased outflows, offloading 254.9 million tokens compared to 240 million inflows. The resulting negative balance change of -14 million tokens suggests increased selling from this group.
Momentum indicators reflected the shift, with the Relative Strength Index falling into the bearish zone at 47. The Stochastic Momentum Index also dropped to 4.4, indicating strengthened downside momentum and weakened buyer presence.
