World Liberty Financial has experienced significant volatility following political developments in the USA. The stock weakened after President Donald Trump made strong statements against Canada this week.
Trump initially threatened to reject the certification of Canadian-made aircraft and impose tariffs of up to 50%. He later warned Canada of a 'very significant' response if the country enters a trade agreement with China. These comments heightened trade tensions and weighed on market sentiment, causing WLFI stock to drop.
Trump scares WLFI owners
Trump's statements triggered a quick selling pressure among World Liberty Financial owners. Panic spread rapidly as investors tried to reduce their exposure. Data shows that the holdings of the largest non-exchange addresses have dropped by about 380 million WLFI in the last week. At today's prices, this holding is worth over $51 million.
Such movements reflect great fear rather than structural weaknesses. Large holders usually act as stabilizing forces during uncertainty. Their rapid exit underscores how sensitive WLFI is now to the geopolitical news landscape. This distribution led to immediate pressure on the price and increased short-term volatility.
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The panic was not limited to existing owners. Participation from new investors also dropped sharply after the statements. Network growth, which measures addresses conducting their first transaction, fell significantly. In the last 48 hours, the metric dropped from 369 to 148.
This decline of 59% shows hesitation among potential new players. New investors seem to be reluctant to invest capital in uncertain political times. Reduced network growth often weakens the demand side. As a result, WLFI has faced challenges in attracting new liquidity during the sell-off.
World Liberty Financial's price has fallen 25% in the last three days. The decline intensified in strength after Trump's statements increased risk aversion. The movement confirmed the 28% crash scenario BeInCrypto described earlier this week. Despite a brief uptick, the pattern developed as a technical weakness in an uncertain macro environment.
WLFI is currently trading around $0.123 at this moment. The token has broken out of an ascending wedge formation. This structure indicated a potential drop of 28.7%, with a target of $0.1156.
This level is close to the support level of $0.113. A clear break below $0.122 will likely drive the price down toward this area.
An increase is still possible if buyers step in at today's levels. Sustained demand may cause WLFI to rise. Regaining $0.131 will be the first sign of stabilization.
A move above $0.143 will invalidate the bearish picture. Such a development would suggest that the selling pressure has been absorbed and that confidence is starting to return.