WLFI traders eye key support as $12.5m Coinbase move stirs volatility

A $12.5m WLFI transfer to Coinbase Prime, heavy long leverage, and key support near $0.11 raise volatility risks despite strong institutional positioning.

A $12.5 million USD1 transfer connected to WLFI token wallets has prompted market speculation after the funds moved to Coinbase Prime, according to blockchain analytics data.

Nansen data showed the WLFI (WLFI) team transferred over $12.5 million USD1 from a multisignatory wallet to a new address on Tuesday. The funds were subsequently traced to Coinbase Prime, a cryptocurrency exchange platform for institutional clients.

World Liberty Financial transfer to Coinbase

Analysts have identified three potential explanations for the transfer, according to market observers. The movement could represent profit-taking, given Coinbase Prime’s role as an institutional exchange platform. Alternatively, the transfer may constitute a liquidity operation or routine treasury management activity.

Nansen AI tracked the $12.5 million USD1 tokens moving from WLFI’s DeFi manager wallet to wallet address 0xb9c72a4 before the funds transferred to Coinbase Prime. No significant selling activity of WLFI tokens has been detected following the transfer, according to market data.

Recent financial reports indicated the Trump family received $1.2 billion in cash from World Liberty Financial over 16 months. Combined with cryptocurrency holdings gains, the total reached $3.45 billion, according to disclosed data.

CoinGlass order book data revealed increased demand for WLFI across major exchanges. Binance derivatives traders held nearly $10 million in net long positions, while OKX traders executed long positions totaling over $1.75 million during the past 24 hours. Spot market flows remained positive with lower volumes, as Binance recorded net purchases exceeding $560,000, with no exchange reporting more than $1 million in spot buying activity.

The WLFI price recently declined below a demand zone where the cryptocurrency had consolidated over several months. Technical analysis suggests potential for movement toward $0.145, where a market imbalance occurred during the recent downtrend. The Relative Strength Index attempted a reversal this week but was rejected, according to chart data.

CoinGlass data showed a concentration of large orders between $0.107 and $0.11. The seven-day WLFI liquidation map indicated cumulative long liquidation leverage of $12.26 million compared to short liquidation leverage of $8.14 million, reflecting bullish positioning among traders.

The broader cryptocurrency market has experienced increased activity amid expectations of interest rate cuts and rising institutional exchange-traded fund inflows, according to market analysts. Large cryptocurrency transfers to exchanges typically attract attention from market participants, as such movements can indicate potential selling pressure during periods of market uncertainty.