Investors are forecasting WLFI prices in the short term as selling pressure increases.

World Liberty Financial (WLFI) is under investigation by the US House of Representatives following reports that an entity linked to Abu Dhabi secretly negotiated to purchase a 49% stake for $500 million, just before President Donald Trump's inauguration.

The investigation focuses on potential involvement of “foreign Capital ” and requires WLFI to provide documentation by March 1st, amidst strong downward pressure on WLFI's price in line with the cryptocurrency market downturn.

The U.S. House of Representatives is investigating WLFI over suspected involvement with foreign equity.

Congressman Ro Khanna has launched an investigation into the $500 million investment in WLFI and requested that the company provide documents to clarify the relationship between the UAE, the PRC, and the White House.

At the heart of the affair is the news that an entity linked to Abu Dhabi "secretly" reached an agreement to purchase 49% of WLFI shares for $500 million, just before President Donald Trump's inauguration. President Trump denied knowing about the deal.

Regarding procedures, Mr. Ro Khanna sent a letter requesting WLFI to provide information and documents to help Parliament “better understand the relationship between the UAE, the PRC, and the White House.” The deadline for submitting the documents was stated as March 1st.

The biggest risk from this development is the “optics” (image and expectations of transparency) for WLFI, as investigations into Capital sources and political influence often increase volatility, leading to liquidation and worsening investor sentiment in the short term.

WLFI is under downward pressure as the cryptocurrency market plunges.

The WLFI plunged, breaking through its 3-month sideways range, amid double-digit declines in Bitcoin and the rest of the cryptocurrency market this week.

The original text notes that WLFI was "forced" down below the Dip of its 3-month accumulation zone, coinciding with a weakening crypto market. One factor cited is WLFI selling $50 million worth of Bitcoin, reflecting a level of hesitation or defensiveness in response to market conditions.

The pressure is further amplified by Capital from spot Bitcoin ETFs, according to linked cash flow data on the spot Bitcoin ETF outflows tracking page . As net outflows from spot Bitcoin ETFs continue to be negative, investor risk appetite may weaken across the market.

On the supply side, World Liberty Financial also transferred 235 million WLFI to Binance during the recent dip, which is often XEM as a signal to increase the likelihood of selling (although depositing to the exchange does not automatically mean selling has been done).

The 0.106–0.176 price range was broken, and the 0.10–0.115 area turned into resistance.

When WLFI lost the 0.106–0.176 zone, the 0.10–0.115 area transformed from support into a supply zone, making any rebound to this point susceptible to selling pressure.

The sideways consolidation zone mentioned extends from 0.106 to 0.176. As described in the original technical text, the CMF indicator has been below -0.05 since mid-January, implying net selling Capital and significant supply pressure.

At the same time, the Awesome Oscillator is depicted as showing “extremely strong” downward momentum, reinforcing the argument that sellers are in control of the short-term trend. In such a structure, pullbacks are often technical and can become opportunities for sellers to re-enter the market.

The key point to note is the 0.10–0.115 zone: previously a demand zone, it has now "flipped" into a supply zone. Therefore, if the price bounces up to touch this zone, the probability of a bearish reaction is considered higher than the possibility of a sustained reversal.

Short-term strategy: wait for a pullback, then observe and sell at the resistance zone.

The scenario presented is that WLFI could retrace to 0.10–0.115 to fill the long candle wick, then risk falling back to 0.086.

The original text refers to the "market crash" on October 10th that caused WLFI to fall to 0.0715 on Binance, while the Dip on Coinbase was less extreme at 0.086. Longing wicks tend to be "filled" before the market forms a reverse move.

Therefore, the short-term scenario is to watch for a bounce. A reasonable retest zone is indicated as 0.10–0.115 (the old support zone). If selling pressure appears as expected, the next step could be a decline towards 0.086.

The 0.0715 mark is mentioned as an overly extreme target at the moment. However, this mark could receive more attention if Bitcoin weakens significantly, especially if BTC falls below $55,000 in the coming weeks (a trigger condition according to the original content).

Frequently Asked Questions

What is the U.S. House of Representatives investigating the WLFI over?

The investigation focused on information linking WLFI to foreign sovereign Capital , specifically reports of an Abu Dhabi-linked entity purchasing a 49% stake for $500 million, and requested clarification on the connections between the UAE, the PRC, and the White House.

When is WLFI required to provide documentation?

The original text states that WLFI has until March 1st to provide the information and documents requested in Representative Ro Khanna's letter.

What price range is currently the key resistance level for WLFI?

The 0.10–0.115 zone has shifted from a demand zone to a supply zone after WLFI lost the 0.106–0.176 zone, so a rebound to this area may encounter selling pressure.

What are the short-term price scenarios mentioned for WLFI?

The scenario is that WLFI could rebound to retest the 0.10–0.115 range, then potentially fall to 0.086. The 0.0715 level is XEM too extreme at this point, but it might receive more attention if Bitcoin falls below $55,000.