World Liberty Financial (WLFI) has recently demonstrated a significant rebound, successfully defending the crucial $0.20 support level and marking an 8% daily gain. This impressive recovery, which saw the token briefly touch $0.215, has ignited investor interest, stemming from a strategic combination of internal corporate actions and favorable market dynamics.
Deflationary Measures Drive Investor Confidence
The primary catalyst behind WLFI's recent price surge is the company's aggressive buyback and token burn program. Following a substantial 41% dip in September, a resounding 99.8% of holders voted to allocate all treasury liquidity fees towards these deflationary initiatives. Consequently, World Liberty Financial burned 3.109 million WLFI tokens from protocol fees across Ethereum and BNB Smart Chain. Furthermore, the firm spent $799,000 to repurchase an additional 3.814 million WLFI at an average price of $0.2093 per token. These actions significantly reduce the available supply, easing sell pressure and directly restoring investor confidence in the token's long-term value.
Shifting Market Dynamics and Whale Accumulation
Beyond the team's direct intervention, broader market signals indicate a robust underlying demand. Spot market data reveals a Netflow of -$5.37 million, signifying that more WLFI left exchanges than entered, a common indicator of reduced selling pressure. Concurrently, the Futures market experienced a remarkable surge, with Net Inflow jumping by 126.9% to $17.79 million. This suggests traders are increasingly allocating capital to leveraged positions, reflecting cautious optimism. Crucially, large investors, or "whales," have also been actively accumulating, purchasing 408.6 million WLFI tokens after the recent correction. Their continued net positive inflows further underscore strong demand from major players, reinforcing the positive sentiment surrounding WLFI's recovery and its potential push towards the $0.24 resistance level.
