Key takeout
What’s the WLFI rebound exceeding $0.20?
A repurchase worth $799,000 and consumption of 3.814 million WLFIs and a consumption of 3.109 million have led to a decline in supply and regaining investor confidence.
What points to the next move in WLFI?
Spot Netflow Hit -$537 million, futures inflow jumped to $17.79 million, whales accumulated, and traders earned a potential push towards $0.24.
World Liberty Financial [WLFI] He held his position with $0.20 support and easily tapped local highs. At the time of pressing, WLFI traded at $0.208, recording an earnings of 8% every day.
But what inspired this price rise?
WLFI token buyback and burn kickoff
Ambcrypto observed that key factors that helped drive the price rise of WLFI were World Liberty Financial repurchase and the launch of token burn.
After the WLFI fell 41% in September, World Liberty confirmed that holders voted 99.8% to assign 100% of the Treasury liquidity costs to token burns and buybacks.
WLFI has announced that it has burned 30 million WLFI from Ethereum protocol fees [ETH] and BNB Smart Chain [BSC].
Plus, I spent $799,000 on all USD1, USD coins [USDC]and tether [USDT] Buy back 3.714 million WLFIs at an average price of $0.2093 per token.
Source: x
In contrast, on-chain monitors such as Onchain lenses tracked $939,000 spent on multiple chains on 4486 million WLFIs.
Such deflationary movements can reduce tokens that can be sold and ease selling pressure. They often create short-term momentum when applied consistently on a large scale.
Spots and futures flows will shift
Interestingly, in addition to the WLFI team, investors in the spot and futures market have significantly increased their exposure.
According to Coinglass, the 24-hour spot inflow reached $7,642 million, but the outflow rose at $8,179 million at press time. This brings Netflow to $5.37 million. This is a signal that more WLFIs have left the exchange than they enter, and is often read as a drop in sales pressure.
Source: Coinglass
On the futures side, inflows rose to $467.5 million, a $449.7 million outflow. Net inflow reached $17.79 million, up 126.9% per day, with traders allocating more capital to leveraged positions.
Source: Coinglass
This consistency between spot outflow and futures inflow reflects cautious optimism as buyers absorbed supply and while derivatives rose, they absorbed supply.
Whale activity remains supportive
After the WLFI corrected six days ago, the whales jumped into the market to accumulate dips. Over this period, the whales purchased 48.6 million WLFI tokens, reflecting strong demand from large players.
Source: Nansen
At the time of writing, the incoming whales were about 4.31 million compared to the 3.01 million spills.
That purely positive flow shows that after the sharp September drawdown of tokens, larger players continued to accumulate and strengthen investor trust.
Will it go back to $0.24 or $0.18?
WLFI successfully defended $0.20 in support after World Liberty Financial began buying back and burning the tokens, regaining investors’ trust.
Therefore, if investor demand is held while token buybacks and burns remain constant, WLFI can earn more profits on the price chart. In doing so, WLFI will regain $0.218 and target the $0.24 resistance.
However, if the momentum inspired by the initiative fades away and the team is unable to maintain their pace, another retrace can be $0.18.