World Liberty Financial deposited 235 million WLFI, worth $40.63 million, into Binance. The team’s wallet has not made any deposits into Binance since WLFI was launched, signaling a major market shift. Arkham data show the team wallet still holds about $1.7 billion worth of WLFI.
Such a substantial transfer has prompted market participants to speculate about market-making or liquidity provision ahead of broader distribution events. Analysts have suggested the transfers could be an airdrop for USD1 holders, given the four-week program. Nevertheless, holders and traders have interpreted the moves as bearish, leading to sharp selling pressure. On the 25th of January, buyers stepped into the market to defend $0.17 levels, but their efforts proved futile, as WLFI closed at a lower low.
The sentiment shifted on the 26th of January, with market participants across the crypto space flipping bearish. The altcoin’s Spot Netflow turned positive, climbing to $5.18 million, a notable swing from -$2.33 million, signaling increased selling via deposits. Top Holders’ outflows rose to 254.9 million tokens against 240 million in inflows, driving the balance change to -14 million. The RSI slid to 47 and the Stochastic Momentum Index fell from 13 to 4.4, indicating weakened upside momentum as WLFI traded around $0.164 with a low near $0.160.
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