World Liberty Financial has trapped traders on both sides of its pennant structure, generating liquidity through failed breakouts. Price is now testing a
The pennant structure in WLFIs 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 Financials 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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