There are many discussions around WLFI right now, and what I’m seeing is not at all reassuring. At this moment, the WLFI token has formed a bearish flag pattern on the four-hour chart, which suggests there’s a higher probability of further decline. The current price is around $0.08, and if this pattern completes, it could drop toward $0.066—about 17% lower. But if WLFI breaks above the upper trendline, the story could change, and it might rise toward $0.081-$0.085.

What I’m truly concerned about is on-chain data. Wallets associated with WLFI have collateralized nearly 3-5 billion WLFI tokens on the Dolomite protocol, borrowing approximately $75 million in stablecoins. This is a classic risk setup—if WLFI’s price drops, the collateral value will decrease, triggering liquidations. Even worse, over $40 million worth of WLFI has been transferred to Coinbase Prime, where pool utilization has now reached 93%. This means liquidity is extremely tight, and any large sell pressure could push the system into a difficult situation.

Another issue that’s bothering me is governance questions. Justin Sun, the founder of Tron and an advisor to WLFI, has publicly claimed that the project has secretly embedded a backdoor blacklist function in the smart contract. He said it can instantly block any wallet, which is the opposite of decentralization promises. Additionally, there’s a proposal to unlock 16 billion WLFI tokens, which would create a huge dilution risk for current holders.

So, what should we be watching now? First, how WLFI’s price handles the resistance level at $0.081-$0.085. Second, what will happen to the 3-5 billion WLFI collateral and whether the 93% pool utilization will decrease or remain high. And third, whether the WLFI team and their advisors will provide any clarity on governance and the unlock schedule. The coming weeks will be critical—technical patterns, on-chain activity, and project transparency will all determine WLFI’s future.