World Liberty Financial price is stabilizing at the $0.18 support level after forming a bullish double-bottom structure. This zone reflects strong underlying demand, hinting at a potential short squeeze if price reclaims the value area low with conviction.
Summary
- Price stabilizes at $0.18 forming a bullish double bottom.
- Reclaiming the value area low would confirm bullish continuation.
- Short squeeze potential could propel WLFI toward $0.25 resistance.
World Liberty Financial (WLFI) has successfully defended the $0.18 support region twice, establishing a double-bottom formation that often precedes bullish reversals. The repeated defense of this area shows active buying interest at lower price points, while sellers have struggled to drive the market below this threshold. With liquidity resting above current levels, a breakout could fuel an accelerated move toward $0.25 resistance.
Adding to the bullish outlook, World Liberty Financial recently proposed redirecting all protocol-owned liquidity fees toward market buybacks and permanent token burns, a move that could enhance long-term token value.
WLFI price key technical points
- Critical Support: $0.18 has been tested twice, confirming strong demand and forming a double bottom.
- Value Area Low (VAL): Price is trading just below the VAL, with a reclaim signaling bullish continuation.
- Upside Liquidity Zone: Short traders’ resting liquidity above current levels could trigger a short squeeze to $0.25.
WLFI’s current structure is defined by a weak-base double bottom near $0.18, a pattern that commonly marks the end of a local downtrend. The market has tested this level twice, each time generating a rebound with modest follow-through, signaling buyers are gradually absorbing sell pressure. This repeated defense underscores that demand is building quietly at the range low.
The $0.18 region also coincides with the value area low of the existing trading range, further strengthening its importance as a structural pivot. A successful reclaim of this level on a closing basis would confirm renewed bullish momentum, opening the path toward the mid-range resistance around $0.22, followed by the higher-timeframe resistance at $0.25. Such a move would realign price within the fair-value zone and signal that market participants are shifting bias from accumulation to expansion.
An additional catalyst lies in the resting liquidity above current price levels. Many short sellers are holding positions near prior breakdown zones. Should WLFI reclaim the VAL, these traders may be forced to cover positions, triggering a short squeeze. This scenario would likely produce impulsive upward price action toward the next high-timeframe resistance.
From a structural standpoint, the double-bottom pattern suggests market psychology is transitioning from capitulation to accumulation. The symmetry of the lows, coupled with a slight increase in trading volume during each rebound, further supports the potential for a trend reversal. If WLFI closes several daily candles above $0.19–$0.20, bullish confirmation would be established, signaling the broader range could evolve into a continuation phase toward $0.25.
What to expect in the coming price action:
As long as WLFI maintains its footing above $0.18 support, buyers hold the advantage. A confirmed reclaim of the VAL could lead to a swift short-covering rally targeting $0.25, while failure to hold above $0.18 would invalidate the setup and reopen the path to deeper consolidation.
