WLFI Tests Key Fibonacci and Value Area Support After Liquidity

World Liberty Financial has retraced into a high-confluence support zone after a liquidity sweep on both ends of its range. The 0.618 Fibonacci retracement and value area low now hold the key to its next move.

WLFI has shown volatility in recent sessions, with a bullish expansion quickly reversing back below dynamic support. This whipsaw action reflects a classic liquidity trap, where traders on both ends of the market are caught offside. Price now sits at a critical technical area, where volume support and Fibonacci retracement levels converge. How the asset reacts here will determine whether a bullish reversal materializes or further downside risk opens up.

Key Technical Points:

- Liquidity Trap: Expansion quickly reversed, sweeping traders both sides.
- 0.618 Fibonacci + Value Area Low: Confluence of support currently tested.
- Volume Node Reaction: Bullish influx needed to sustain reversal.

Liquidity traps occur when price extends in one direction before reversing sharply, catching both longs and shorts. WLFI’s recent behavior fits this template perfectly, with an initial bullish expansion that quickly reversed back below dynamic support. This shakeout not only liquidated late buyers but also hunted liquidity from short-side participants.

The critical area now lies at the 0.618 Fibonacci retracement and the value area low. This confluence creates a technical foundation where reactions are often decisive. Historically, WLFI has shown strong responses from such regions, making this a pivotal area for bulls to defend.

Volume nodes in this region also indicate the presence of buyers. However, for a true reversal to take shape, bullish inflows must increase. Without this participation, the current structure risks becoming a failed auction, opening further downside exploration.

Market structure context is equally important. WLFI remains within a broader range, and this current low-end test offers the possibility of range rotation back toward higher levels. A strong bounce here would validate the equilibrium pattern, while failure would shift sentiment toward prolonged weakness.

What to Expect in the Coming Price Action:

WLFI is positioned at a high-confluence support zone, and the next sessions will be critical. A bullish influx of volume could propel price back toward the upper end of the trading range, while failure to hold this level risks extending the downside.