The prolonged cryptocurrency market volatility has weakened World Liberty Financial (WLFI)’s price action, pushing whale investors into negative territory, according to a revelation disclosed today by market analyst Santiment. As per metrics shared by Santiment on the X platform today, the price performance of the WLFI has waned over the recent past weeks as declining whale activity influenced negative market sentiment.
The WLFI coin is the native cryptocurrency of World Liberty Financial, a lending protocol that bridges TradFi and DeFi using its USD1 stablecoin and various governance tokens. As reported by Santiment data, the WLFI price has dropped 21% over the past four days, with on-chain metrics indicating that this price fall coincides with a 7-week decrease in whale activity and exchange outflows.
Chart Shows Whales Distributing Tokens
Today, cryptocurrency WLFI trades at $0.07852, down 4.9% over the past 24 hours. Also, its price has been down 20.6% and 21.4% over the past week and month, respectively, as per data from CoinGecko. As revealed by Santiment, the trigger of these significant declines includes liquidity outflows and declined whale activity, which sparked increased user cautiousness and heightened pressure among investors.
As identified by the analyst, institutional players on the World Liberty Financial platform have decreased their activity, a move that caused bearishness among retail traders who have substantially trimmed their positions. Further Santiment on-chain data tracked yesterday on Friday identified that the ongoing sell-offs are being driven by profit-taking activity, and not a wider institutional exit. An indicator of this is that multiple whales cashed out more than $56.31 million on Friday, flooding the WLFI tokens on exchanges, as pointed out by the data above. This activity shows that whales are engaging in heavy distribution of the tokens under the platform, hitting the market and creating serious pressure on the WLFI price.
WLFI Price Outlook
The data above simply indicates cautious sentiment among savvy traders, explaining why WLFI had been trading in a narrow range between $0.1006 and $0.0970 since last month, March 26 to April 7, this week on Tuesday. Since then, WLFI has experienced a significant fall to currently trading at $0.07852. This recent correction doesn’t imply the end of the bullish cycle; it’s just a natural consolidation phase as the market weeds out excessive speculation.
