WLFI Dual-Engine Launch: Tens of Millions of Dollars Buyback and Technology Foundation Building, Is a Turnaround in Sight?

World Liberty Financial (WLFI) community recently launched a key governance proposal, planning to utilize unlocked treasury funds to incentivize the adoption of its stablecoin USD1, aiming to accelerate ecosystem expansion. Positive fundamental news keeps coming: the project team has used USD1 over the past 3 weeks to buy back $10 million worth of WLFI tokens and has listed core trading pairs on mainstream CEXs. Meanwhile, technical analysis shows that WLFI’s price has completed a classic market auction theory rotation and found support near the value zone lows coinciding with Fibonacci key retracement levels, suggesting selling pressure may be waning. The resonance between fundamental catalysts and technical bottoming signals provides a new dimension for observing WLFI’s future trajectory.

Governance Proposal Sparks Growth Expectations: The Next Battle After $10 Million Buyback

Recently, WLFI’s governance page has become unusually active, with a proposal concerning the future direction of the ecosystem entering the community voting stage. The core of this proposal is to suggest using a portion of the unlocked WLFI treasury assets as incentives to promote the widespread adoption of its native stablecoin USD1. This marks a clear strategic shift for the WLFI ecosystem—from solely building a token economy model to leveraging stablecoins as a hub to drive practical applications and partner integrations.

This proposal is not baseless; it is built on recent solid progress. The project team disclosed convincing data: in just the past 3 weeks, the WLFI ecosystem has used USD1 revenue or reserves to buy back up to $10 million worth of WLFI tokens on the open market. This move directly reduces circulating supply and signals the team’s confidence in its value. Additionally, USD1 has successfully gained important spot trading pairs on major CEXs like Binance, providing solid liquidity support. These achievements collectively validate the “USD1 growth flywheel” theory: more adoption leads to more revenue, which supports more buybacks and ecosystem development, creating a positive feedback loop.

If the proposal passes, the treasury funds released could be used to reward liquidity providers for USD1, subsidize costs for integrating new DeFi protocols, or incentivize partners within its ecosystem to adopt USD1 as a payment or settlement tool. As stated in the proposal, “USD1 adoption = more integrations, more usage, more partners, and more active economic activity within the entire WLFI ecosystem.” If successfully executed, this strategy will fundamentally enhance the practical value and user stickiness of the WLFI ecosystem, rather than relying solely on market speculation.

Technical Chart Reveals Dawn: Market Auction Theory Unveils Potential Bottom Structure

While the community discusses the governance proposal, WLFI’s price chart subtly shows technical patterns worth the attention of professional traders. According to the market auction theory framework, WLFI’s price appears to have completed a full “auction rotation,” which is often a pre-signal of market equilibrium or trend reversal.

Market auction theory views the market as a continuous value discovery auction process, with key concepts including the Value Area High (VAH), Value Area Low (VAL), and Point of Control (POC). Recently, WLFI’s price movement has perfectly illustrated this process: the price first broke below the VAH, indicating temporary dominance by sellers; then it rotated downward, crossing the POC, which represents the historical volume center; finally, the price reached and began testing the VAL. This complete migration from high to low value zones suggests the market has thoroughly explored the “value” represented by the current decline.

WLFI current key technical and fundamental data points

Recent fundamental actions: Used USD1 to buy back $10 million WLFI in the past 3 weeks

Key technical support: VAL ( and 0.618 Fibonacci retracement level resonating

Major resistance above: POC ) and previous structural resistance near $0.18

Core growth proposal: Use treasury funds to incentivize USD1 adoption, currently in voting

External environment: Facing investigations and inquiries from some legislators, adding uncertainty

What makes the current technical outlook more convincing is that the test of the VAL coincides with the 0.618 Fibonacci retracement level—the well-known “Golden Ratio” support—creating a technical resonance. This convergence of multiple key supports greatly strengthens the argument that “downward momentum may have exhausted.” Despite reports that some legislators are pushing for investigations into World Liberty Financial, adding external uncertainty, the price action shows resilience at this level. As long as WLFI’s daily closing price can stay above VAL, it can be seen as trading within a “value zone” accepted by the market, rather than entering a new “value discovery” phase of further decline.

Dual-Engine Market Logic: Can Fundamentals and Technicals Resonance?

WLFI currently faces a delicate interplay between fundamental and technical factors. On one hand, positive governance proposals and tangible buyback data form the “bullish engine” of fundamentals; on the other hand, the price approaching key support levels forms the “bottoming engine” of technicals. Whether both can work in concert will determine if WLFI rebounds or continues to drift in weak consolidation.

From a market logic perspective, a positive governance proposal is generally viewed as a medium- to long-term bullish signal, as it indicates the project’s future development direction and resource allocation focus. However, short-term prices are often dominated by sentiment and capital flows. The “potential bottom” signals from technicals provide a possible “launch window” for the market to reprice the positive fundamentals. If the price can stabilize above VAL and the proposal passes, buying pressure may attempt to retake the POC. Once the POC is effectively broken above, it will turn from resistance into support, opening the way for the price to test the next significant resistance near $0.18.

However, investors should remain cautious. The market is still in a “rotation” state rather than a clear uptrend. Until the price recovers POC with increased volume, it is more likely to oscillate within the current value zone. Additionally, the proposal is still in voting, with uncertain outcomes; external regulatory scrutiny is also a looming risk. Therefore, trading volume will be a key indicator in the coming weeks: increasing volume on upward moves will confirm buyer strength and bottom validity; shrinking volume during consolidation suggests ongoing stalemate, requiring new catalysts to break the deadlock.

WLFI Ecosystem Analysis: More Than Just a Token — A Financial Protocol Matrix

What is WLFI? For readers unfamiliar with the project, World Liberty Financial is not just a simple meme coin or single-token project. It aims to build an integrated decentralized finance protocol matrix that includes stablecoins, lending, trading, and governance. Its native token WLFI functions as the governance and utility token of the ecosystem, allowing holders to participate in key decisions like treasury fund utilization and potentially benefit from ecosystem growth. Its stablecoin USD1 is designed to maintain a peg to the US dollar through diversified collateral and algorithmic mechanisms, serving as the core medium of value transfer within the ecosystem. The project’s roadmap consistently focuses on expanding USD1’s application scenarios and improving the overall protocol’s capital efficiency.

Competition and opportunities in the stablecoin sector: The push for USD1 adoption reflects the current fierce competition in the crypto stablecoin space. Besides giants like USDT and USDC, major blockchains and DeFi protocols are trying to launch their own native stablecoins to capture value, enhance ecosystem stickiness, and achieve independence. For WLFI, the success of USD1 directly impacts whether its economic cycle can be established. This competition is not only technical but also a test of ecosystem integration, partnership networks, and community trust. WLFI’s increased investment at this stage demonstrates both challenge and determination to build a self-sufficient financial ecosystem.