World Liberty Financial has trapped traders on both sides of its pennant structure, generating liquidity through failed breakouts. Price is now testing a high-confluence support zone at $0.19 that could determine its next major move.
Summary
- WLFI has flushed liquidity on both sides of its pennant, leaving $0.19 as the critical support to watch.
- With buyers and sellers reset, the next move from this level could set the tone for its short-term trend.
World Liberty Financial (WLFI) attempted a breakout to the upside that ultimately failed. The move above resistance at $0.25 lacked the necessary buying pressure to sustain momentum, resulting in a classic bear trap. Shortly after, price slipped back below the pennant and broke under its support line, creating another false break.
These consecutive failed auctions highlight how liquidity has been run on both sides of the pattern, leaving WLFI in a technically pivotal position as it tests deeper support. At the same time, World Liberty Financial is preparing a key move aimed at driving WLFI’s long-term growth in the crypto market.
WLFI price key technical points:
- Pennant Structure: Price traded in equilibrium before both upside and downside failed auctions.
- Liquidity Sweeps: Bear trap above $0.25 and failed breakdown below support generated liquidity.
- $0.19 Confluence Support: Aligns with the value area low and 0.618 Fibonacci retracement.
The pennant structure in WLFI’s chart showcased textbook market behavior where traders anticipate a breakout, only for liquidity to be swept in both directions. The initial breakout above resistance at $0.25 was rejected due to insufficient demand, creating a bear trap that punished late buyers. This rejection quickly reversed back into the pennant, before price slipped through the support side of the pattern, another failed auction that cleared liquidity from traders positioned short.
From a technical perspective, this dual liquidity sweep suggests market makers have cleared both sides of the order book, preparing the ground for a potentially stronger directional move. With liquidity harvested above and below the pennant, WLFI now trades at a more technically sustainable level.
The key focus is the $0.19 region, which stands out due to its technical confluence. Not only does this level coincide with the value area low, but it also aligns with the 0.618 Fibonacci retracement. Historically, such confluence levels have acted as springboards for bullish reversals, provided buyers step in with sufficient volume. WLFI, launched by the Trump family, is also drawing bullish attention from top traders, adding weight to the potential for a rebound here.
Volume analysis will be crucial in the coming sessions. For a sustainable reversal, WLFI needs to attract strong inflows and print bullish engulfing candles or similar confirmation structures on the daily chart. Without this momentum, the support may weaken and open the door to deeper downside exploration.
What to expect
World Liberty Financial’s token is positioned at a decisive support level after clearing liquidity on both sides of its pennant formation. If buyers defend $0.19 with volume-backed conviction, WLFI could rotate back toward the $0.25 resistance zone. Failure to generate bullish participation, however, risks extending the correction further.
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