I see significant concerns regarding WLFI. A bear flag pattern is forming on the four-hour chart — if it completes, the price could drop to $0.066, a roughly 20% decline. Currently, the price is around $0.07.

But even more worrying than the technical aspect is the on-chain data. Wallets associated with WLFI on the Dolomite protocol have collateralized 3-5 billion WLFI to borrow $75 million in stablecoins. This is quite risky because if WLFI's price drops rapidly, the risk of liquidation increases.

Additionally, 40 million WLFI has been transferred on Coinbase Prime, and pool utilization has reached 93%. Such high utilization means withdrawals could be limited, and if a large seller decides to exit, it could cause problems.

Another major point — 16 billion WLFI tokens are about to unlock. This new supply could put downward pressure on the market. There are also questions about governance, whether the project has hidden backdoors or not.

In the coming days, we will see whether WLFI breaks resistance levels or continues to fall according to the bear pattern. I will keep an eye on it until more clarity emerges regarding liquidity and the unlock schedule.