Liberty

President Trump

World Liberty Financial

World Liberty Financial’s WLFI <a href="https://cointelegraph.com/price-indexes/worldcoin-wld" rel="noopener noreferrer nofollow">token</a> risks dipping 20% in April, according to a mix of convincing technical and fundamental indicators.
Key takeaways:
<ul>
 <li>WLFI is painting a bear flag setup with a 20% downside potential.</li>
 <li>Insider trading activity allegations add to bearish risks.</li>
</ul>
<h2 id="bear-pennant-hints-at-wlfi-dip-in-april">Bear pennant hints at WLFI dip in April</h2>
As of Tuesday, WLFI was consolidating inside a classic bear flag, a continuation pattern that typically forms after a sharp decline.
In technical analysis, a bear flag typically resolves when the price breaks below the lower trendline alongside rising trading volumes and falls by as much as the structure’s maximum height.
<figure><img alt="Donald Trump, Price Analysis, Tech Analysis, Market Analysis, Altcoin Watch" src="https://s3.cointelegraph.com/uploads/2026-04/019d8b9d-9b6e-7ff5-ba14-cf4662726d74.png">
 <figcaption>WLFI/USDT four-hour chart. Source: TradingView
 </figcaption>
</figure>
Applying this classic rule to WLFI’s chart brings its measured downside target to around $0.066 in April, down about 20% from the current price levels.
Conversely, a break below the upper trendline risks invalidating the bear flag setup, with the 20-day (green) and 50-day (red) exponential moving averages (EMAs) at around $0.081 and $0.085 serving as primary upside targets.
<h2 id="insider-activity-token-unlock-fears-add-pressure">Insider activity, token unlock fears add pressure</h2>
Beyond technicals, WLFI faces mounting scrutiny that continues to weigh on sentiment.
On-chain data from Arkham Intelligence <a href="https://intel.arkm.com/explorer/entity/worldlibertyfi" rel="noopener noreferrer nofollow">show</a> wallets linked to the project deposited roughly 3–5 billion WLFI tokens—largely illiquid—as collateral on Dolomite to borrow about $75 million in stablecoins, including USD1 and USDC.
<figure><img src="https://s3.cointelegraph.com/uploads/2026-04/019d81d4-532b-7b1d-836d-3ce4c718e0c4.png" alt="WLFI may drop 20% as World Liberty Financial faces 'LUNA 2.0' allegations">
 <figcaption>Source: <a href="https://x.com/Darky1k/status/2042893977142137057" rel="noopener noreferrer nofollow">X</a>
 </figcaption>
</figure>
Over $40 million was later moved to Coinbase Prime. The position pushed pool utilization to ~93%, restricting withdrawals and drawing criticism for “circular” liquidity extraction.
The structure is risky because it uses thinly traded internal tokens to borrow real liquidity, meaning any <a href="https://cointelegraph.com/news/trump-linked-wlfi-hits-new-low-token-backed-loan-concerns" rel="noopener noreferrer nofollow">sharp WLFI price drop could trap depositors</a>, trigger bad debt, and deepen selling pressure.
<figure><img src="https://s3.cointelegraph.com/uploads/2026-04/019d81c5-b6a1-78c3-b018-1b11c6b44e6a.png" alt="WLFI may drop 20% as World Liberty Financial faces 'LUNA 2.0' allegations">
 <figcaption>Source: <a href="https://x.com/wyckoffweb/status/2043261113039565102" rel="noopener noreferrer nofollow">X</a>
 </figcaption>
</figure>
At the same time, markets are bracing for a <a href="https://x.com/worldlibertyfi/status/2042411313561846161" rel="noopener noreferrer nofollow">proposed unlock</a> of over 16 billion WLFI tied to still-locked public allocations, raising dilution risks.
Adding to the pressure, Tron founder Justin Sun, who reportedly invested ~$75 million and became an adviser, again <a href="https://x.com/justinsuntron/status/2043235063132037268" rel="noopener noreferrer nofollow">accused</a> WLFI of embedding a hidden backdoor blacklisting function in the smart contract.
Related: <a href="https://cointelegraph.com/news/trump-backlash-crypto-tokens-crash" rel="noopener noreferrer nofollow">US President Trump faces renewed backlash as Trump-linked tokens crash</a>
This allegedly allowed the team to unilaterally freeze his wallet/assets without notice or recourse, violating "decentralization" promises.
He called it a trap, denounced "token scandals," claimed governance votes were rigged/non-transparent and demanded unlocks/transparency.

WLFI may drop 20% as World Liberty Financial faces 'LUNA 2.0' allegations

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