WLFI Hits a New All-Time Low- Is Trump's Crypto Bet Crashing?

Key Insights

• Donald Trump's Family WLFI has crashed to a new all-time low, dropping to $0.17 with the potential to drop to $0.15 next.

• WLFI whales started selling lead by Justin Sun, with long positions facing massive liquidations

Trump's World Liberty Financial [WLFI] has faced significant selling pressure and a downtrend since its launch three days ago. After the launch, WLFI boosted Trump's wealth by $5 billion, as reported earlier by EMCryptohub. Since then, WLFI has dropped from an all-time high of $0.46 to a new all-time low of $0.17. 

Source: CoinMarketCap

As of this writing, Trump's WLFI was trading around $0.1788, having declined by 22.02% over the last day. From its all-time high of $0.46 recorded three days ago, WLFI is down approximately 61% confirming intense downward pressure. Also, its market cap declined from $7.9 billion to $4 billion, losing roughly $3 billion in value. 

Why is WLFI declining this first?

Whales are dumping Trump's WLFI aggressively. 

Before the official launch, whales and other large investors jumped into the market to buy at presale value. After the launch on exchanges, investors showed different behavior, with some buying while others selling. When sellers overwhelmed the market and prices started to decline, most holders turned to selling WLFI. One of these early investors who is now aggressively selling is Tron's and World Liberty Financial advisor Justin Sun. 

Source: On-chain lens

According to On-chain lens, Justin Sun transferred 50 million WLFI tokens worth $9.12 million to a new wallet, which is likely to be deposited into HTX. A day ago, he sold 5.289 million tokens for $1.19 million through HTX and is expected to continue with the trend. In total, Justin has spent $75 million to buy 3 billion WLFI and received 600 million WLFI as a token unlock. Thus, Justin is one of the top holders of WLFI, and if he decides to continue selling at the current rate, the altcoin price will crash massively. 

Whale losses are rising first. 

After WLFI dropped to a new all-time low, most whales are now sitting on unrealized losses. According to Lookonchain, a whale who spent $2 million to acquire 7.4 million WLFI has recorded $650k in losses and total investment now worth $1.35 million. Another whale that jumped into the futures market with a long position closed all positions with a total loss of $1.635 million. 

Source: Lookonchain

Another trader is also down by over $2.2 million after going long. With longs getting liquidated, those who went short are enjoying the benefit, with one trader making $1.8 million in profit. If whales continue to see more price drops, they will likely close positions at a loss, further causing more pressure to the downside.

Will Sellers see WLFI's total crash?

Currently, Trump's WLFI is on the verge of a massive price crash, and if the witnessed market conditions continue, it lacks the support to avoid it. 

Therefore, if sellers dominating the market continue to sell while buyers lack any incentive to buy, WLFI will most likely reach a new low. With the current price range, the most likely stop next is $0.15, and also a risk of dropping below $0.1 at the table.