Karla Barker 
Technical Breakout Sparks Rally
World Liberty Financial’s WLFI token has made a significant move today, climbing over 33% in just 24 hours. After being stuck under pressure for nearly seven weeks, the token finally broke through a descending diagonal resistance that had been limiting its price action since late September. This breakout has traders watching closely as WLFI reclaims key resistance levels and converts them into support.
The $0.15 resistance zone, which had been a major sticking point, has now flipped to become confirmed support on the 4-hour chart. This structural change is important because it suggests the market dynamics have shifted in favor of buyers. I think this kind of technical reversal often catches people by surprise when it happens after such a prolonged period of consolidation.
Indicators Support Bullish Case
Technical indicators are lining up to support the current momentum. The MACD recently formed what traders call a Golden Cross, with the blue line crossing above the orange signal line. This pattern typically suggests that buying momentum is returning, which could mean WLFI is regaining a bullish trajectory.
Meanwhile, the Money Flow Index has risen to 55.57, showing renewed investor interest. When MFI readings increase like this, it usually means liquidity is moving into the asset, which strengthens the ongoing recovery. These indicators together paint a picture that the token might have more room to run if the current momentum holds.
Short Squeeze Dynamics
This rally has put significant pressure on short traders, leading to forced liquidations in the derivatives market. Data shows about $3.45 million in short positions were liquidated during the past 24 hours. That’s not insignificant for a token of this size.
What’s interesting is that further gains could trigger even more liquidations. For example, if WLFI reaches $0.168, another $2.46 million in short positions could get liquidated. At $0.184, that number jumps to nearly $4 million. These forced liquidations can create additional buying pressure, potentially amplifying the rally in what traders call a short squeeze.
Key Levels to Watch
For this move to sustain itself, WLFI needs to maintain its position above the breakout resistance and show continued volume support. The next target traders are eyeing is around $0.25, which would mark the token’s highest trading point since September 22.
However, there’s always the risk of pullbacks. If the token breaks back below the breakout line, it could retreat toward support around $0.11. That’s why traders are closely monitoring volume and momentum indicators to see whether buyers can maintain control.
The combination of technical breakout, bullish MACD signals, rising MFI, and short liquidations creates a favorable environment for WLFI. But markets can be unpredictable, so while the current setup looks promising, it’s wise to keep an eye on those key support and resistance levels to gauge whether this rally has staying power.