World Liberty Financial Plans Tested as U.S. Canada Trade Rhetoric Sparks WLFI Sell-Off
World Liberty Financial (WLFI) came under intense pressure this week as escalating political rhetoric out of the United States rattled broader market sentiment. The token’s price weakened sharply after President Donald Trump issued a series of aggressive warnings toward Canada, injecting fresh uncertainty into global trade relations.
Trump initially floated the possibility of decertifying Canadian-made aircraft and introducing tariffs of up to 50%. He later warned of a “very substantial” response should Canada move forward with a trade agreement involving China. The remarks amplified geopolitical risk, and WLFI quickly became collateral damage as traders moved to de-risk.
On-chain data points to a wave of panic-driven distribution. Over the past seven days, holdings controlled by major non-exchange addresses declined by roughly 380 million WLFI, worth more than $51 million at current prices. Large holders are typically seen as long-term stabilizers, making their rapid reduction in exposure a clear signal of heightened fear tied to macro headlines rather than protocol-specific issues.
The pullback also discouraged new participants. Network growth, which measures first-time wallet activity, dropped sharply over a 48-hour period, falling from 369 to 148. The 59% contraction suggests prospective investors are staying on the sidelines amid political uncertainty, reducing fresh liquidity during the sell-off.
Price action reflected the stress. WLFI fell around 25% over the past three days, with losses accelerating as risk aversion intensified. The token is now trading near $0.123 after breaking down from an ascending wedge formation, a pattern that pointed to a decline toward the $0.115–$0.113 support zone.
A clear move below $0.122 would increase the likelihood of a deeper test of that support. On the upside, stabilization could emerge if buyers defend current levels. Reclaiming $0.131 would be an early sign of recovery, while a sustained push above $0.143 would invalidate the bearish outlook and indicate that selling pressure has been absorbed.