A U.S. House of Representatives investigation is investigating Trump-associated company World Liberty Financial (WLFI) after reports of ties to foreign sovereign capital surfaced. It was reported that an Abu Dhabi-linked entity secretly struck a deal to buy a 49% stake for $500 million in the cryptocurrency company, shortly before President Trump’s inauguration.
California Rep. Ro Khanna launched an investigation into the $500 million investment and sent a letter to World Liberty Financial, requesting “information and documents that will help Congress better understand the relationship between the UAE, the PRC and the White House.”
For his part, President Donald Trump has denied having any knowledge of this agreement.
Needless to say, the outlook is not good for the company, which has until March 1 to deliver the requested documents. On the price front, WLFI is already under strong downward pressure.
WLFI under close surveillance
Bitcoin (BTC) and the rest of the crypto market have seen double-digit percentage losses over the past week, and WLFI has been forced below the low of a 3-month range. WLFI’s sale of Bitcoin for $50 million reflects a lack of conviction in the market, compounded by BTC spot ETF outflows.
World Liberty Financial also deposited 235 million WLFI on Binance during the latest downtrend, highlighting the dominance of sellers.
Source: WLFI/USDT on TradingView
The recently lost range extends from $0.106 to $0.176. The CMF has been below -0.05 since mid-January to reflect significant selling pressure, and the Awesome Oscillator has highlighted extreme bearish momentum.
The former demand zone of $0.10 to $0.115 has now also become a supply zone. Therefore, any price rebound in this area will likely result in a bearish price reaction.
Trader Call to Action – Wait to Sell the Bounce
The chaos during the 10/10 stock market crash saw WLFI prices drop to $0.715 on Binance. On Coinbase, the low was $0.086, less extreme. Long wicks like these tend to fill out before the market can move in the opposite direction.
Therefore, in the short term, traders may be wary of a rebound. A retest of the old support zone of $0.10 to $0.115 is likely. This move will likely be followed by a decline towards $0.086.
Final Thoughts
- World Liberty Financial is facing a congressional investigation after reports of a $500 million deal with an Abu Dhabi-linked entity.
- The $0.0715 price target is too extreme at the moment, but it may become important if Bitcoin drops below $55,000 in the coming weeks.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
