The price of World Liberty Financial has been significantly volatile following months of political events fueling the sentiment. The Trump-backed token achieved strong overall returns as discussions about Greenland's strategic future heated up again.
The narrative now seems to be fading. As the diplomatic tension eased, speculative interest weakened, raising concerns that the recent strength in prices could dissipate.
What happened between Trump and Greenland
Interest in World Liberty Financial grew as Donald Trump revived his long-standing effort to buy Greenland. The idea first emerged in 2019 and returned again when Trump took office, bringing additional political and market attention.
Traders saw the narrative as a driver, which could lead to a politically based rise in the value of assets linked to Trump due to geopolitical pressure.
The mood strengthened at the end of 2025, when protests erupted in both Greenland and Denmark. Protesters opposed the transfer of independence and emphasized their right to self-determination.
In January 2026, Trump claimed that the USA would gain 'full access' to Greenland, which increased speculative purchases.
Authorities later clarified that the emphasis in discussions was on defense cooperation, not ownership. At the World Economic Forum in Davos, Trump announced a security framework, and European leaders emphasized strict conditions.
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WLFI holders are booking profits
Investor behavior changed sharply as events progressed. In November 2025, major holders collected around 300 million WLFI tokens in ten days.
Purchases were based on the expectation of prolonged geopolitical tensions. According to blockchain data, confidence in the narrative continuing into early 2026 was strong, supporting a higher valuation.
However, the situation changed after January 22, when Trump officially abandoned ownership plans. Following the cooperation framework announcement, owners began to reduce their WLFI exposure.
The stock exchanges' WLFI balances rose in one day from $1.71 billion to $1.94 billion. About 230 million tokens, worth nearly $37 million, were sold within 24 hours. This reflected fears of diminishing significance as the catalyst was absent.
Mood indicators support weakened demand. The Money Flow Index shows that buying pressure has nearly disappeared after recent sales. A sharp drop reflects capital exiting WLFI as speculative traders reassess risks.
If MFI drops below the zero threshold, this would reinforce selling pressure. Such a signal often precedes a longer decline, especially for narrative-based assets. Without new investments, WLFI remains vulnerable to further declines as liquidity weakens.
WLFI trades at about $0.164 after nearly three months in an upward wedge pattern. The structure typically indicates a weakening sentiment during a prolonged uptrend.
Although a short-term upward spike was observed, the pattern remains intact. A confirmation of the breakout predicts a 28% decline, setting a target of $0.1145.
Technical confirmation occurs if WLFI drops below the support level of $0.143. This would see a new low in 2026. Given the token's sensitivity to Trump-related news, additional selling wouldn't be surprising. Increased stability in diplomacy could accelerate downward pressure.
The upward risk remains if political rhetoric resurfaces. If Trump brings up the Greenland topic again, WLFI could rebound from the $0.165 level. A rise above $0.182 would indicate renewed speculative interest.
A reclaiming of $0.193 or higher would invalidate the downward pattern. Under these circumstances, a rise towards $0.200 would be possible.