WLFI climbs even as a major event wipes out traders – What’s going on?

Key Takeaways

Why is World Liberty Financial attracting buyers?

Team and whales accumulated millions in WLFI, reducing circulating supply and boosting demand.

What could move WLFI next?

Equal liquidations and dense downside liquidity clusters increased volatility risk.

World Liberty Financial drew intense market attention as both investors and market makers positioned themselves to accumulate the token. WLFI rose 8% over the past day, but derivatives data showed elevated volatility that could threaten recent gains.

WLFI team adds to demand

There has been a decisive push among investors to drive demand for World Liberty Financial [WLFI].

The most recent trigger came from the team itself, which made a significant $7.79 million purchase from the market, removing approximately 46.56 million WLFI from circulation.

Typically, when a project team makes a purchase of this scale, it draws investor attention. Such action creates an element of scarcity and demonstrates long-term confidence in the asset, which is often strong enough to support rising demand.

On top of that, market maker Wintermute, known for providing liquidity and reducing extreme price swings, was also seen making a similar move.

Arkham Intelligence reported that the group purchased roughly $840,000 in WLFI, marking a staggering 505% increase in its position, as its balance climbed to about $1.01 million.

This series of purchases has continued over several days. AMBCrypto previously reported that whales have also been entering the market using a similar strategy, with a combined $31.5 million worth of WLFI bought from circulation.

Volatility ahead?

Despite the growing bullish interest, the recent market developments indicated that WLFI could soon become highly volatile.

Recent liquidation data showed that both long and short traders in the Perpetual Futures market were being hit at nearly equal levels. The combined liquidations recently reached $1.09 million, although this figure remained incomplete.

More telling insight came from the data on the 25th of November, which showed that short traders lost around $443,120, while long traders suffered nearly identical losses of $444,200.

That narrow split placed WLFI in a fragile equilibrium. Any sharp move could trigger a liquidation cascade in either direction.

By contrast, Spot and Perpetual sentiment skewed bearish. Retail Spot traders sold $2.6 million worth of WLFI over the past 48 hours.

The Open-Weighted Funding Rate stayed negative at -0.0139%, suggesting traders positioned for downside.

Key tendencies to watch

The Liquidation Heatmap highlighted dense liquidity clusters below WLFI’s current price. These zones, packed with resting orders, historically acted as magnets during volatile phases.

If downward pressure intensifies, these tightly packed levels could attract price movement, increasing the likelihood of a decline in WLFI.

However, this is not a certainty. Continued accumulation from whales and further team purchases could counteract that pull, helping to sustain upward momentum and keep WLFI pushing higher on the chart.