World Liberty Financial's price has shown a lot of volatility in recent months, especially due to political developments. The Trump-supported token made significant macro gains when discussions about the strategic future of Greenland were brought up again.
However, this narrative seems to be weakening now. As diplomatic tensions have lessened, speculative interest has decreased, raising concerns that the recent price increase may fade away.
What happened between Trump and Greenland
The interest in World Liberty Financial increased when Donald Trump revived his old plan to buy Greenland. This proposal first emerged in 2019 and was discussed again after Trump became president, generating renewed political and market attention.
Traders saw this as a catalyst and bet that geopolitical pressure could further boost the price of Trump-related assets.
Momentum grew further at the end of 2025 when protests broke out in Greenland and Denmark. Protesters rejected any idea of a transfer of sovereignty and centered the right to self-determination.
In January 2026, Trump stated that the US would gain 'full access' to Greenland, leading to additional speculative purchases.
Later, officials clarified that the discussions were primarily about defense cooperation and not about ownership. At the World Economic Forum in Davos, Trump announced a security agreement while European leaders reiterated their hard borders.
Do you want more of these token insights? Subscribe to the daily Crypto Newsletter from editor-in-chief Harsh Notariya here.
WLFI holders are taking profits
Investor behavior changed significantly in the lead-up to these events. In November 2025, large holders accumulated about 300 million WLFI in ten days.
These purchases indicated that people expected geopolitical tensions to last longer. On-chain data showed that there was confidence that the narrative would hold into early 2026, allowing valuations to rise.
That attitude completely turned around after January 22, when Trump officially abandoned ownership plans. After the announcement of a collaboration, holders began to reduce their positions.
The WLFI supply on exchanges increased in one day from 1.71 billion to 1.94 billion. Approximately 230 million tokens, worth nearly $37 million, were sold within 24 hours. This wave of selling showed that people became fearful of diminished relevance now that the catalyst had disappeared.
Momentum indicators confirm decreasing demand. The Money Flow Index (MFI) shows that buying pressure has nearly disappeared after the recent wave of selling. The sharp decline indicates that capital is leaving WLFI as speculative traders reassess their risk.
If the MFI drops below the zero line, selling pressure is confirmed. Such a signal often precedes longer downward movements, especially in assets driven by narratives. Without new inflows, WLFI remains vulnerable to further decline as liquidity dries up.
WLFI is trading around $0.164 after nearly 3 months of moving in a rising wedge. This structure often indicates diminishing momentum during longer upward trends.
Despite a brief upward breakout, the pattern remains intact. A clear breakout to the downside predicts a drop of 28%, towards $0.1145.
Technical confirmation follows if WLFI falls below the $0.143 support level. Such a move would mean a new low for 2026. Given the sensitivity of the token to Trump-related developments, additional selling is certainly possible. Sustained diplomatic calm could even accelerate the downward pressure.
Bullish risk remains if the political debate resurfaces. If Trump reignites the Greenland topic, WLFI may recover from $0.165. A rise above $0.182 would indicate renewed speculative interest.
If $0.193 or higher is regained, the bearish pattern is invalidated. In that case, a rise towards $0.200 becomes possible.