WLFI isn’t having a great week. The token dropped more than 20% in a single day on October 10 and is now down around 35% from recent highs.
If you’ve been wondering what’s behind the crash, it’s a mix of whale activity, governance drama, and technical weakness all hitting at once.
WLFI Whale Dumping and Unlock Flood
The biggest factor, whales dumping tokens. On October 10, several large holders offloaded huge amounts of WLFI, sparking a wave of panic selling.
That move came right after 20% of presale tokens unlocked on September 1, increasing the circulating supply to about 24.66 billion WLFI, or roughly a quarter of all tokens.
When supply floods the market like that, it usually leads to short-term pain. The data backs it up, WLFI trading volume jumped 506% in 24 hours, hitting $1.19 billion, which shows how intense the sell pressure really was.
Adding fuel to the fire, WLFI $25 million token sale to Hut 8 on October 4 didn’t sit well with investors, who saw it as a possible insider advantage.
Governance Drama Shakes Confidence
Then there’s the governance side of the story. WLFI team made a controversial move by freezing hundreds of wallets, including one belonging to Justin Sun, after reports surfaced that he moved tokens to exchanges.
That decision came after accusations of broken “no-sell” promises and even APY manipulation through HTX, which made investors nervous.
Freezing wallets goes against the decentralization ethos that crypto stands for, and it instantly damaged trust in the project.
To make things worse, the Trump family reportedly holds around 22.5 billion WLFI, raising fears that too much power is concentrated in a few hands. Right now, sentiment is deep in the red, RSI‑14 sits around 25.5, which shows the token is heavily oversold.
WLFI Chart Breakdown Confirms the Trend
The WLFI chart tells the same story. WLFI has broken below multiple support levels and is now trading about 35% under its 30‑day SMA ($0.205).
Momentum is still bearish, the MACD histogram at -0.0062 points to continued downside, and Fibonacci levels put the next major support at $0.127, right around the 78.6% retracement zone.
If WLFI price drops below $0.13, we could see another sharp leg down. On the flip side, a move back above $0.173 (the 50% Fib level) would be the first sign that bulls are regaining control.
Outlook for WLFI Price
So, why is WLFI price down today? It’s the perfect storm, whales selling, token unlocks, trust issues, and a technical breakdown all hitting at once.
The only bright side right now is that the token looks extremely oversold, meaning a short‑term bounce isn’t off the table. But for a real recovery, WLFI needs to regain key resistance levels and, more importantly, restore investor confidence.
Until that happens, it’s probably smart to keep watching whale movements and unlock schedules closely, because that’s where the next big move will come from.