WLFI Price Dips as Justin Sun Raises Governance Questions

• Justin Sun escalated claims over WLFI’s governance structure.
• WLFI dropped 20% in seven days as the public dispute continued.
• Technical indicators stayed bearish with support at $0.077 and resistance near $0.100.

Since last week, tension between World Liberty Financial and the TRON DAO founder has been seen. As a new week begins, both parties are still exchanging words on their official accounts. In a week’s timeframe, the WLFI price seems to have reacted to the ongoing clash with a 20% dip.

Justin Sun Challenges World Liberty Financial Over Asset Control

Since last week, Justin Sun has intensified his dispute with World Liberty Financial by questioning who controls key powers inside the protocol. He said that one address can freeze a user’s assets through a guardian structure. World Liberty Financial denied the claims and said its controls protect users and support platform stability.

In one of his recent posts on X, Sun called on World Liberty Financial to identify the single guardian EOA and the 3-of-5 multisig. He said investors deserve to know who can freeze their assets. He argued that real control sits with one anonymous address. Sun said on-chain records show the same address blacklisted his wallet after he held project-linked tokens. He also said that the address owns a second Guardian safe with a one-signature threshold.

He claimed one person can freeze assets without community approval. Sun said asset seizure still requires a 3-of-5 multisig vote. However, he said freezing needs only one signature. He argued that this structure makes governance votes meaningless. World Liberty Financial rejected Sun’s allegations and defended its risk controls. The company said wallet restrictions target abuse and suspicious activity. It said those measures do not exist to seize or control funds.

The company also threatened legal action over Sun’s public statements. It said, “Justin’s favorite move is playing the victim while making baseless allegations.” It added, “Same playbook, different target. WLFI isn’t the first.” WLFI also defended its lending activity after criticism over a large borrowing position tied to its ecosystem. The team said collateral fully supports those positions. It said no immediate liquidation risk exists.

WLFI Price Turns Bearish as Losses Deepen and Price Holds Near Lows

These tensions come as the WLFI price trades down by over 20% in a week, adding more pressure to a record set during its all-time high. According to CoinMarketCap data at the time of press, WLFI traded at $0.07995 after a sustained weekly decline, leaving the token down 20.28%. The price started near $0.09991 and moved lower early, losing ground through a steady downward sequence.

That initial slide unfolded in stages, with short pauses that failed to change the direction. A brief rebound lifted the price back toward the upper range, but the recovery ended quickly. The token then returned to a weaker path and resumed its decline across the middle range. Losses deepened when the price dropped sharply below the $0.0900 area during the later phase.

That move marked the strongest downward stretch and widened the gap from earlier weekly levels. After that break, the token continued falling, although the rate of decline slowed. Price action then shifted into a narrower band near the lower end of the weekly range. Several small upward moves appeared, but each rebound stayed limited and failed to restore momentum. The token remained below the earlier recovery area and stayed close to its weaker levels.

WLFI Price Risks Another Downside

According to TradingView technical analysis, the WLFI price support zone sits around $0.07720 for now. The WLFI price remains below the resistance level near $0.10082, which keeps the recovery structure capped. MACD stays below the signal line, and both readings remain negative, showing bears still control the direction.

The MACD also shows downside pressure remains, although the weakness is limited. The RSI index reads near 25.45, which places WLFI in the oversold zone after the latest downward move. That reading shows the price has stretched lower and now sits near levels where rebounds often begin.

The current structure puts sellers in an advantageous position as long as the WLFI price remains below 0.100. Any further decline below $0.077 would reveal another downward trend and prolong the current bearish trend. Provided that it is supported, oversold RSI conditions may permit a short recovery to close-by resistance zones. Current WLFI price action indicates more weakness until indicators turn upward, the most important level being the support.