WLFI Price Prediction: Trump’s second son ousted from the World Liberty board due to NASDAQ rules, can WLFI recover?

The price prediction for the WLFI Token faces significant uncertainty due to the compliance discussions between its parent company World Liberty Financial and Nasdaq. Eric Trump, the son of Trump, was removed from the board restructuring, causing the stock price of ALT5 Sigma to immediately fall by 7%. Technical Analysis shows that WLFI's trading is at a critical support level amid potential reversal patterns and ongoing dumping pressure, along with a mysterious large-scale sell-off that the community cannot explain.

Leadership changes raise regulatory concerns and stock price decline

ALT5 Sigma announced in August plans to raise $1.5 billion through selling shares to purchase WLFI Tokens. The initial agreement arranged for Eric Trump to be a board member. However, documents submitted to the U.S. Securities and Exchange Commission (SEC) two weeks later revealed that the arrangement was reversed after negotiations with Nasdaq: Eric Trump became a board observer while Zak Folkman, the Chief Operating Officer of World Liberty Finance, received a board nomination.

Although the Nasdaq requires a majority of board members to be independent, two securities law professors were still unable to determine which specific rule led to this change after reviewing the documents, as both candidates appear to be equally non-independent according to standard definitions. Notably, a limited liability company associated with Trump holds approximately 38% of World Free Finance's equity and possesses 22.5 billion WLFI Tokens.

Technical Analysis shows mixed bullish and bearish signals, mysterious dumping becomes a hidden worry

(Source: TradingView)

The technical chart of WLFI Token shows conflicting signals, making its price movement full of uncertainty:

• Bullish Signal: A potential "inverted head and shoulders" bullish reversal pattern has appeared on the hourly chart near the low of $0.21-$0.22. However, this pattern requires the price to gain sustained buying above the neckline resistance level at $0.22-$0.23 to be confirmed.
• Bearish signals: The price of WLFI has fallen below multiple key support levels and has reached a new 52-hour low of $0.1963. More concerning is the article's mention of a "mysterious large-scale dumping," the source of which the community cannot identify or explain. This unexplained dumping often continues until the underlying issue is resolved or the selling pressure is exhausted.
• Mixed Mode: On the 2-hour chart, WLFI has formed a "symmetrical triangle" consolidation pattern, indicating an imminent directional breakout. However, this pattern lacks the volume expansion typically accompanying significant breakouts, and the fundamental uncertainty stemming from leadership changes may negatively impact the direction of the breakout.

Analysts' predictions that the WLFI price can rebound to the $0.30-$0.50 range seem overly optimistic given the current technical realities and governance uncertainties.

Conclusion

The uncertainty faced by the WLFI Token highlights the significant risks associated with projects linked to high-profile individuals and complex governance structures. Unresolved regulatory issues, conflicting technical signals, and unexplainable large-scale dumping have made this token a highly speculative asset. Until these fundamental issues are resolved, its price outlook will remain overshadowed.