Cryptocurrencies endure a bloodbath today as Monday’s gains failed to hold.
Digital asset bears look to confirm September as a bearish month with significant declines on the final day of the month.
Amidst the downsides, World Liberty Finance’s token appeared to suffer the most after losing over 8% of its value in the past 24 hours.
WLFI slips below $0.20
The bearish performance saw WLFI dropping below the psychological mark at $0.20 to trade at $0.1928.
Its slide has attracted attention as investors start to exit, exposing the support barrier at $0.188.
According to blockchain investigator Lookonchain, a whale has removed 11 million WLFI tokens from the liquidity pool before dumping for 521 ETH, worth approximately $2.15 million.
The substantial withdrawal has sparked debates, with traders questioning whether the digital coin can hold its current levels.
WLFI’s dip has shifted attention to a key area on the price chart – the $0.188 foothold.
The barrier has served as the alt’s lifeline for weeks, reducing selling pressure whenever bears gain strength.
Now, enthusiasts are watching to see if it will hold again. Remember, losing the support could trigger substantial declines.
Why is $0.188 crucial?
Support zones are beyond figures on a price chart.
They represent a region where investors and traders previously joined to purchase.
Tokens often rebound at these levels amid buyer momentum resurgence. On the other hand, failure to hold key footholds can lead to extended losses.
For WLFI, $0.188 remains a vital launchpad for price recoveries.
The altcoin has seen 4 substantial bounce-backs in September after hitting the price zone.
Now that it is approaching the same support, should we expect imminent gains?
Holding $0.188 again would prove resilience and possibly clear the path for short-term gains.
Bulls will target the first resistance at $0.20 – $0.21.
Reclaiming this region would be the initial signal that WLFI is regaining ground.
That can propel the token past $0.23 to the key level at $0.25. That would mean an over 27% rally from $0.188.
Broad-based rallies in “Uptober” can extend the gains past the psychological level of $0.30.
However, we cannot ignore a bearish move, especially when dealing with this unpredictable asset class.
If the whale exit signals pain ahead, WLFI might drop below $0.188.
That would open the downside path to $0.17, beneath which WLFI might fall to $0.157.
A dip-buying phase
Meanwhile, broader sentiment will determine WLFI’s performance in the coming sessions.
An extended weakness might mean losing $0.188 barrier, while swift recoveries amid October optimism will support remarkable rebounds for the Trump-linked cryptocurrency.
Analyst Michael van de Poppe urges individuals to accumulate the current dip before an altcoin season.
I’ve stated this multiple times, but this correction is a magnificent opportunity to be positioned into #Altcoins.
The recent listings on Binance have proven to be strong ones, and I think we’ll start to see the big resurrection of many of those coins.
For context, cryptocurrencies generally rally in October, with Bitcoin recording roughly 22% average monthly returns.
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