World Liberty Financial Seeks Banking Charter as Token Consolidates Near $0.16 Support
The Trump family backed World Liberty Financial (WLFI), a cryptocurrency platform. They have applied for a national trust banking license
Quick overview
- The Trump family has backed World Liberty Financial (WLFI), which is seeking a national trust banking license to enhance its cryptocurrency platform.
- WLFI's USD1 stablecoin is gaining traction, with significant transaction volume and a growing number of addresses, despite recent price drops.
- Technical analysis indicates WLFI is in a consolidation phase, with critical support levels around $0.16 to $0.165 that must hold for a bullish outlook.
- The outcome of WLFI's banking charter application could influence its price stability, while market sentiment remains a key factor in its short-term performance.
The Trump family backed World Liberty Financial (WLFI), a cryptocurrency platform. They have applied for a national trust banking license with the Office of the Comptroller of the Currency (OCC). This is a big step toward making the platform more legitimate, even though prices have been falling recently. WLFI is currently trading at $0.16, which is a 3.1% drop from the previous day. The token is stabilizing after a big spike in early January.
Trump Family’s Crypto Platform Files for National Trust Charter to Accelerate USD1 Stablecoin Adoption
The banking charter application, which was sent in through the company WLTC Holdings, would let World Liberty Financial print, store, and convert its USD1 stablecoin in-house instead of having to use third-party services like BitGo. According to CEO Zach Witkoff, institutions are already using USD1 for payments, settlements, and treasury operations across borders. The charter would allow for fee-free minting and redemption, while also putting the whole process under stricter regulatory scrutiny.
The application comes at a time when USD1 is growing quickly, with supply rising to $3.1 billion, including $2 billion from MGX’s stake in Binance. The stablecoin has drawn in 393,700 addresses and handled around 50 million transactions, with an adjusted volume of $10.1 billion, which is more than Ripple USD’s $3.3 billion. World Liberty Financial is one of a small number of crypto companies that are working to integrate with traditional banks. It joins Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos as recent charter recipients.
But the move also makes people pay more attention. Donald Trump is identified as a co-founder along with his sons Eric, Barron, and Donald Trump Jr. This raises questions about possible conflicts of interest. Critics have alluded to Trump’s presidential pardon of Changpeng Zhao, the founder of Binance, after dealings that were said to have helped the platform. Witkoff has tried to address these concerns by saying that World Liberty set up the trust firm in a way that would avoid conflicts, with the Trump family not being CEOs or in charge of day-to-day operations.
WLFI/USD Technical Analysis: Consolidation Pattern After Post-Breakout Rally
From a technical point of view, WLFI’s price action shows that momentum is slowing down after a strong recovery. The coin went up from around $0.12 in December to test resistance at $0.18 in early January before falling back to where it is now. This 50% rise caused people who were short to cover and sparked some speculative activity, but the market has now stopped moving as it takes in its gains.
WLFI has dropped from its recent high of $0.1821 to $0.1667 on the 12-hour chart. It is now below the critical support level of $0.1735, which was the last swing high from November. Even if the price has gone down, the token is still above both the 50-period moving average and the rising Supertrend signal above $0.16. This suggests that the pullback is a consolidation rather than a reversal. The coin is also still above an upward trendline that connects the lowest swings since November, which adds to the structural support.
WLFI seems to be making a bullish flag pattern on higher timeframes, which is a classic continuation indication in technical analysis that happens when a rapid rise is followed by tight sideways consolidation. This pattern usually ends in the same direction as the previous trend, which means that there is still room for growth after the current stop ends.
The 30-minute chart shows that the ranges are getting tighter between $0.168 and $0.175. The candle sizes are getting smaller and the intraday volatility is getting lower, which means the market is waiting for directional catalysts instead of giving up. WLFI has, however, fallen below short-term Supertrend resistance around $0.175, while Parabolic SAR indicators are still above, showing that momentum has slowed down.
WLFI Price Outlook: Critical Support Levels Define Near-Term Direction
Several important levels make it obvious what the technical roadmap for WLFI is. Immediate support is between $0.16 and $0.165, which is in line with the rising Supertrend support. For the bullish case to stay strong, this zone must hold. If the price closes above $0.175 again, it would mean that the current consolidation is healthy absorption instead of distribution. This might start the momentum toward higher goals again.
The main upside goal is the $0.20 level, which is a psychological level that is around 21% higher than where prices are now. This extension would probably happen if the price cleanly broke through $0.18, especially as WLFI tends to move strongly on small order books when demand rises. If momentum picks up, objectives might go as high as $0.195 and maybe even $0.22.
But there are still real risks on the downside. Spot netflows have been clearly negative, with recent sessions showing close to $0.9 million in outflows even though the price was over $0.17. This means that holders are still selling into strength, which is why the upside trend has stopped even though the technical breakout happened. If the $0.16 support level breaks down, the story would change quickly, and the price might drop back to $0.15 or even the December base between $0.12-$0.13.
WLFI has a high-beta, event-sensitive profile, which implies it prefers to follow the market rather than fight it. The token’s rise in January happened at the same time that Bitcoin and Ethereum stabilized, which made people more willing to take risks. If the crypto market gets worse, WLFI would probably see more selling pressure than other coins because its order books are hard to sell and it has a negative flow profile.
The current range of $0.17 to $0.175 doesn’t give traders much of an edge. There will be cleaner chances to make money either when the price breaks out over $0.18 for continuation trades or when it breaks down below $0.16 for bearish setups. The application for a banking charter is a key factor that could sustain prices over the medium run, although technical variables and the overall mood of the market will probably still dictate prices in the short term. The next several sessions will show if WLFI’s strong comeback turns into a long-term uptrend or if it fades as interest from speculators decreases.
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