WLFI seeks stabilization at $0.11 as selling pressure intensifies the Fibonacci retracement

WLFI consolidates below the $0.14 moving average with a target set on the critical zone of $0.10–$0.11

Bullish liquidations dominate the market while on-chain signals worsen short-term technical weakness

The RSI approaching oversold territory raises the possibility of a price structure reversal

Price Movement: WLFI approaches strategic support levels

The WLFI token recently hit three-week lows at $0.1215, followed by a 12% rebound that took it up to $0.1371. However, the asset faced significant resistance and has retreated again. Currently, WLFI trades around $0.17 according to the latest data, though it remains down 27.01% from its all-time highs.

From a technical perspective, sellers are eyeing the support range of $0.11–$0.10, which has proven to be a key containment level twice during the year. This same range coincides with the 23.60% Fibonacci retracement, providing additional structure for traders seeking confirmation of stabilization.

The market profile supports this narrative: WLFI has moved from its Value Area High, passing through the Point of Control, heading toward the Value Area Low, which is precisely within that $0.11–$0.10 range. This accumulation of overlapping support signals creates a potential base for buyers to enter positions.

Technical indicators suggest a turning point

WLFI’s Relative Strength Index is currently at 38, approaching oversold territory. This level presents a potential opportunity for a short-term price reversal, although there is still some margin before oversold conditions are officially confirmed.

A break above the 20- and 50-day moving averages at $0.14 would mark the first bullish strength signal. If this occurs, the next targets include the 38.20% Fibonacci retracement around $0.14, the 50% retracement near $0.1640, and resistance zones at $0.1666–$0.1760.

On the bearish side, if WLFI closes below $0.10, it could head toward its all-time low of $0.07, the last level recorded in October.

On-chain pressure accelerates downward movement

On-chain data paint a picture of temporary weakness. In the last day, approximately $143,000 were liquidated, mostly long positions. Bullish liquidations totaled $127.11K, while shorts barely amounted to $15.89K.

This imbalance suggests a “long squeeze” in progress. Traders betting on gains are being forced to close their positions, and some are even pivoting defensively into short positions. This type of rotation typically pushes prices downward before stabilization occurs.

Open interest remains relatively stable at $213 million, showing a sideways pattern indicating traders are remaining observers but without a clear commitment in either direction. Volatility has contracted significantly, leaving a cautious market awaiting a more defined catalyst before making decisive moves.

Key levels to monitor

The $0.11–$0.10 zone represents the first critical level where we expect buyers to intervene. If prices manage to rebound from this area, the next target would be to revisit the 20- and 50-day moving averages coinciding with the 38.20% Fibonacci retracement at $0.14.

Beyond this, the $0.1640 (50% Fibonacci retracement) and resistance at $0.1666–$0.1760 are secondary targets for a sustained reversal.

Meanwhile, a decisive break below $0.10 would open the path toward the historic low of $0.07, representing a significant risk scenario for long-term holders.