Trump family-owned WLFI initiates $1.43 million token burning: Can the DeFi mechanism assist in breaking through the consolidation zone?

The World Liberty Financial Token WLFI, associated with the Trump family, has successfully executed its first buyback and burn operation under the governance proposal, destroying a total of 7.89 million WLFI, worth approximately $1.43 million. The buyback funds of $1.06 million came from DeFi liquidity fee revenue. This strategy aims to reverse the weak trend of September and support the market structure by contracting the circulating supply. Currently, WLFI is bottoming out in the range of $0.18 to $0.22, and analysts believe that the supply squeeze effect brought about by the buyback and burn is creating the technical conditions for a strong breakout that may occur in October.

Token Economics: $1.06 Million Funded WLFI Buyback and Burn

The WLFI project has launched its key token economics strategy, which is to use the fees generated from the protocol's own liquidity for buybacks and burns.

· Funding Sources and Execution: According to Lookonchain data, the project has accumulated a total of $1.01 million by collecting 4.91 million WLFI and $1.06 million in liquidity revenue. Subsequently, these funds were used to buy back 6.04 million WLFI from the open market, completing the cycle of fund accumulation and destruction.

· Burn scale: In the past 24 hours, the project has destroyed 7.89 million WLFI through transactions on the BNB Chain and Ethereum, worth approximately 1.43 million USD. An additional 3.06 million WLFI on the Solana chain is still awaiting destruction.

· Governance Foundation: Previously, over 99% of token holders voted in favor of a governance proposal that requires all treasury liquidity fee revenues to be specifically used for buybacks and burns. This latest operation is the first execution of the plan, aimed at alleviating selling pressure and optimizing the market structure of the token, in order to stabilize WLFI's price performance in October.

Price Trend: Is the Accumulation Phase Over After Three Weeks of Consolidation?

On Saturday, the WLFI price was around $0.207, fluctuating between $0.203 and $0.214 over the past 24 hours (as of the time of writing, WLFI is currently at $0.2052, down 1.5% in 24 hours). The current market capitalization is close to $5.1 billion, with daily trading volume between $300 million and $360 million. WLFI has been listed on multiple major exchanges, with primary trading activity concentrated on the WLFI/USDT trading pair.

The 4-hour chart of WLFI/USDT shared by crypto trader Knight shows that the Token is currently trading at $0.2057, building up for a potential breakout.

· Bottoming Phase: Over the past three weeks, WLFI has been moving sideways within a narrow range of $0.18 to $0.22. This range has repeatedly acted as support and resistance, indicating that after the early intense fluctuations, the market is accumulating strength, forming a clear accumulation pattern, with neither buyers nor sellers managing to clearly dominate.

· Technical Signal: Knight's forecast line outlines a bullish scenario: if WLFI can hold the lower support, it indicates that the upward potential has opened up. This pattern is similar to the classic transition from accumulation to expansion, where prolonged stable trading often suggests that a strong trending market is about to arrive.

WLFI Price Prediction: Supply Squeeze Effect and Potential Breakout Target

The recent $1.43 million buyback and burn action of WLFI has intensified pressure on the supply side, creating potential supply squeeze conditions for the market. Traders are closely watching whether October will usher in the next bullish cycle.

· Breakthrough Key Point: Currently, WLFI is still operating within its consolidation range. The market needs a decisive signal to confirm a trend reversal: if the daily closing price can firmly stand above the range of 0.22 to 0.23 USD, it will signify that the market has entered a momentum-driven upward phase.

· Potential resistance and targets: Once upward momentum is established, the initial resistance for WLFI will appear around $0.30, $0.50, and $0.70. If momentum is strong, the Token could further challenge the $1.00 mark. The forecast also includes expected pullbacks, but these will be viewed as part of a healthy upward trend rather than a linear surge.

Conclusion

WLFI's first large-scale buyback and burn, relying on DeFi liquidity fees, has effectively implemented its token economics strategy, creating favorable macro conditions for price stability and increase in October. From a technical perspective, WLFI is completing accumulation within the key range of $0.18 to $0.22, and the contraction effect on the supply side could become the catalyst for a breakout. Investors need to closely monitor the breakout point of $0.22–$0.23; once confirmed, WLFI is expected to quickly enter the next momentum-driven expansion phase from the current calm consolidation.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make decisions cautiously.