WLFI Technical Analysis February 23, 2026: Weekly Strategy

WLFI closed the week with a 0.71% decline, maintaining its downtrend structure; while accumulation signals are sought amid critical support tests around $0.11, the sharp drop in the USD1 pair is suppressing market sentiment. Long-term outlook remains dominantly bearish, but multi-timeframe confluence clarifies turning points for the weekly strategy.

WLFI in the Weekly Market Summary

WLFI remained stuck in a narrow $0.11-$0.12 trading range throughout the week and sustained its primary downtrend structure with a 0.71% weekly loss. Volume profile remained stable at the $385.35M level, but recent news flow altered market dynamics: WLFI coordinated attack news against USD1 on X and the pair's sharp drop to 0.9924 dollars increased short-term selling pressure. RSI at 41.83 hovers in the neutral-bearish zone, while MACD shows positive histogram bullish divergence signals. Closures below the short-term EMA20 ($0.12) keep the bearish short-term filter active. In the big picture, WLFI is moving away from the accumulation phase and exhibiting distribution signals; for position traders, the $0.0961 major support line stands out as an inflection point. For more detailed spot data, check the WLFI detailed spot analysis page.

Trend Structure and Market Phases

Long-Term Trend Analysis

The long-term trend structure draws a clear downtrend character; WLFI has failed to break the lower high/lower low pattern on higher timeframes (1W/1M), and the trend filter gives a bearish signal. Without a close above the $0.1434 major resistance (score 75/100), a bullish reversal is not possible. Market structure is filled with signals of transition to the distribution phase in recent months: volume spikes decreased during resistance tests, indicating smart money is closing positions. In the macro context, BTC's downtrend and declining altcoin dominance are limiting WLFI's recovery. The trend remains intact; if $0.0961 support does not hold, it could gain momentum toward the $0.0488 downside target. From a portfolio manager perspective, on long-term horizons (monthly), WLFI should be monitored for accumulation setups as it approaches cycle lows.

Accumulation/Distribution Analysis

Market phase analysis shows emerging distribution patterns in the current structure: breakout failure after weekly range contraction and news-driven sales align with Wyckoff distribution schematics. In the volume profile, the area around $0.11 is testing a high volume node (HVN) as an accumulation base, but $385M volume does not support bearish conviction. RSI divergence (with MACD positive histogram) may signal a weak hands shakeout, but transition to the accumulation phase is premature without a break of $0.1172 resistance. In strategic depth, position traders should monitor the distribution cap ($0.1434); a breakout with confluence could trigger an upside leg. Follow WLFI futures market data for futures market dynamics.

Multi-Timeframe Confluence

Daily Chart View

On the daily timeframe (1D), WLFI has a dominant bearish bias with 2 strong supports / 3 resistance breakdowns: $0.1067 (71/100) and $0.0961 (73/100) support confluence shows efforts to hold at the current $0.11 test. Closures below EMA20 confirm the short-term downtrend, while RSI at 41.83 is near oversold, offering bounce potential. Key inflection point is $0.1172 daily resistance; a break above could flip the daily Supertrend to bullish. Confluence across timeframes shows emerging accumulation characteristics on 1D, but volume confirmation is awaited.

Weekly Chart View

On the weekly chart (1W), balanced with 2S/2R strong levels but bearish tilt: momentum shift is required above $0.1434 weekly resistance (75/100) and $0.1324 (68/100). As price stabilizes at $0.11 weekly lows, MACD histogram positive divergence offers long-term reversal hope. Market phase depends on weekly closures: a weekly candle above $0.12 EMA would signal a trend structure shift. Multi-timeframe confluence suggests caution mode from the weekly perspective; BTC context integration is critical.

Critical Decision Points

Key levels that will define direction: Major Support - $0.0961 (73/100, cycle low confluence), $0.1067 (71/100, volume node). Major Resistance - $0.1434 (75/100, multi-TF cap), $0.1172 (70/100, immediate hurdle), $0.1324 (68/100, upside extension). 12 strong levels across 1D/3D/1W: Breakdown below $0.0961 deteriorates R/R, upside activates strategic targets with $0.1172 break. Upside objective $0.1705 (25 score), downside risk $0.0488 (21 score); R/R ratio ~1:3.5 favors bearish scenario. Visit the WLFI and other analyses page for all analyses.

Weekly Strategy Recommendation

In the Upside Case

If bullish scenario plays out ($0.1172 break + $0.1434 test), initiate long positions above $0.1067 support: Initial target $0.1324, extension $0.1705. Stop-loss below $0.0961, R/R 1:2.5. Confluence: Daily RSI bounce + weekly EMA20 cross. Position sizing 2-3% of portfolio, trail stop according to structure shift. News flow reversal (USD1 recovery) acts as catalyst.

In the Downside Case

If bearish scenario plays out ($0.1067 breakdown), short exposure on $0.11 resistance rejection: Target $0.0961, extension $0.0488. Stop above $0.1172, R/R 1:4. BTC downtrend alignment increases risk. Monitor volume spike for distribution confirmation; position traders partial cover at $0.0961.

Bitcoin Correlation

WLFI exhibits high correlation with BTC (~0.85); BTC's -4.13% weekly drop at $64,493 and bearish Supertrend signal raises caution flag for altcoins. If BTC key supports $64,323 / $62,095 / $59,967 do not hold, WLFI cascade risk to $0.0961 increases. Breaks of resistances $65,490 / $68,193 trigger BTC bounce, giving green light for WLFI upside leg. BTC dominance rise could accelerate WLFI distribution; position traders should monitor BTC levels as WLFI triggers.

Conclusion: Key Points for Next Week

Next week watchlist: $0.0961 support hold (bullish save), $0.1172 resistance break (upside trigger), BTC $64,323 test. News flow (USD1 pair) and volume spikes will be decisive for phase shift. Market structure suggests patience; downtrend intact until proven otherwise. On strategic horizons, wait for $0.0961 base for accumulation.