World Liberty Financial (WLFI) Price: Is This the Next LUNA? The Warning Signs Are Piling Up

TLDR

• WLFI is forming a bear flag pattern on its chart, pointing to a possible 20% price drop to around $0.066 in April.
• World Liberty Financial used illiquid WLFI tokens as collateral to borrow $75 million in stablecoins on Dolomite, a platform run by its own CTO.
• The borrowing pushed pool utilization to 93%, blocking some users from withdrawing their stablecoin deposits.
• Justin Sun, who invested at least $75 million in WLFI, accused the project of freezing his 544 million tokens using a hidden “backdoor blacklisting function.”
• A potential unlock of over 16 billion WLFI tokens looms, raising fears of heavy dilution.

World Liberty Financial’s WLFI token is under pressure from multiple directions in April 2026. Technical signals, insider activity, and a very public dispute with one of its biggest backers are all weighing on the token’s price.

On the chart, WLFI is trading inside what analysts call a bear flag — a pattern that usually signals more losses ahead. Based on the structure of this pattern, the measured downside target sits at around $0.066, roughly 20% below current prices. If the price breaks higher instead, the 20-day and 50-day exponential moving averages at $0.081 and $0.085 would be the first resistance levels to watch.

The token trades against USDT, and the four-hour chart shows the pattern clearly forming after a sharp decline in recent weeks.

The Dolomite Loan That Rattled Investors

The bigger concern for many investors is what happened off-chart. On-chain data from Arkham Intelligence shows that wallets linked to World Liberty Financial deposited between 3 and 5 billion WLFI tokens as collateral on Dolomite — a lending platform founded by World Liberty’s own chief technology officer — to borrow around $75 million in stablecoins, including USD1 and USDC.

Over $40 million of those borrowed funds were later moved to Coinbase Prime. The move pushed pool utilization on Dolomite to around 93%, which restricted other users from fully withdrawing their deposits.

Critics described it as “circular” liquidity extraction — using the project’s own illiquid tokens to pull out real money. If WLFI’s price falls sharply, the collateral could be liquidated, flooding the market with tokens and trapping depositors in bad debt.

Morten Christensen, founder of airdropalert.com and a WLFI investor, said: “The whole taking a loan on your own token as collateral is tremendously shady.”

Justin Sun Goes Public With His Grievances

Tron founder Justin Sun, who invested at least $75 million in WLFI and was named an official adviser, publicly accused the project of using a hidden backdoor function to freeze his 544 million WLFI tokens. He claimed governance votes were rigged and demanded transparency around token unlocks.

Sun’s tokens were first frozen in September 2025, following the project’s 20% token unlock. They have remained frozen since, according to blockchain firm Bubblemaps.

World Liberty said it has bought back over $65 million in WLFI tokens and denied it is exiting any positions.

The project also said it would hold a governance vote to unlock remaining tokens, but confirmed it would not release all of them at once. A proposed unlock of over 16 billion tokens tied to public allocations remains pending.

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