- The WLFI price is resonating in a short consolidation to form a symmetrical triangle pattern on the daily chart.
- World Liberty Financial has repurchased 3.8M WLFI from exchanges and then sent it to the burn address.
- 3.1M WLFI burned from protocol fees on Ethereum and Binance Smart Chain.
On the weekend, the crypto market witnessed a slowdown in correction momentum as Bitcoin attempted to reclaim $110,000. As a result, a majority of trending altcoins, including WLFI, managed to hold their support. The World Liberty Financial token experienced additional momentum as the team disclosed a substantial buyback and token-burning initiative to drive demand and pressure the price. Will the WLFI price bounce to $0.3?
Fee Burns and Buybacks Wipe Out Nearly 7M WLFI From Circulation
World Liberty Financial has undertaken another significant cut in its circulating supply of the WLFI token by a combination of fee-based eliminations and in-market operations.
Statistics published by the project indicate that over 3.1 million WLFI obtained by the protocol fees on both the Ethereum and Binance Smart Chain networks were destroyed. Additionally, the team implemented a buyback program, which resulted in the acquisition of more than 3.8 million tokens on exchanges.
The acquisitions were funded with a combination of stablecoins: about 401,000 USD1, 196,000 USDC, and 201,000 USDT. According to the reported figures, the average price of the acquisitions was slightly above 0.20 per token.
After the buyback, all acquired units were redirected to a burn address, completely removing the assets from circulation. The net impact of both the protocol fee removals together with the open market purchases will be over 6.9 million WLFI tokens removed from circulation.
The update notes the ongoing application of token burns in the operation of World Liberty Financial, a mix of automated system and discretionary market participation. Encounters indicate that the exchanges were made in both Ethereum and BSC, which are the two blockchains where WLFI has active liquidity.
The active buyback program and additional accumulation show World Liberty Financial’s commitment to reducing token supply and driving demand.
WLFI Price Coiling In a Narrow Range
For nearly a month, the WLFI price has been resonating in a narrow range within a symmetrical triangle pattern. The chart setup is characterized by two converging trendlines that act as dynamic support and resistance, preparing the price for a decisive breakout.
So far, the price has bounced at least twice from either trendline, accentuating their strong influence on the asset’s future projection. This sideways action can be attributed to the broader crypto market’s uncertainty amid the macroeconomic developments.
In the last three days, the WLFI price bounced from $0.18 to the current trading value of $0.216, registering a growth of 20%. Subsequently, the asset’s market cap bounced to $5.37 billion. With today’s jump, the coin price is currently teasing a bullish breakout from the immediate resistance at $0.21.
Following this breakout, the momentum indicator is poised to break above the 50% threshold, suggesting a shift in market sentiment. The coin price also managed to reclaim the 20-day exponential moving average, reinforcing the buyers’ grip over this asset.
With sustained buying, the WLFI price could jump another 13% to challenge triangle resistance at $2.5.
A potential breakout from this resistance will accelerate the underlying buying pressure in the market to push the price above the $0.3 mark.
That said, if the sellers continue to defend the upper resistance, the current consolidation is likely to extend into the month of October.
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