Keeping an eye on WLFI is now essential. A bear flag pattern is forming on the four-hour chart, indicating a potential 20% decline in the coming days. If this pattern completes, the price could drop to the $0.066 level, which is significantly below the current $0.08.

But more concerning than the technical pattern is the on-chain situation. I have observed that wallets associated with WLFI have collateralized 3-5 billion tokens and borrowed nearly $75 million in stablecoins. Additionally, some exchange pools are showing utilization rates of up to 93%, increasing the risk of liquidity issues. If the price drops rapidly, a chain reaction of liquidations could occur.

Questions are also being raised about governance. A key advisor to WLFI has accused the project of having a hidden blacklisting feature, casting doubt on its decentralization claims. Furthermore, the upcoming unlocking of 16 billion tokens poses a dilution risk. Over the next few weeks, it remains to be seen whether technical support holds or if these risks will push the price further down.