While the World Liberty Financial team is trying to stabilize the debt on Dolomite, the WLFI/USDT chart paints a troubling picture. Even partial repayment of the loan has not restored investor confidence.
What's happening "under the hood"
Complex repayment: The project has paid out $25 million in two tranches (on April 7 and 10). For this, 25 million new $ were issued.USD1, of which 3 million were immediately burned. In fact, the liquidity hole was closed with newly created tokens.
Price pressure: The screenshot clearly shows a drop to $0.0794. Over the last 7 days, the token has lost more than 18%. The Supertrend indicator is in the red zone, and the MACD confirms the bearish momentum.
Outstanding debt: Even after repayment, there remains a debt of around $162 million (USD1 + USDC) on Dolomite for the project. The main issue is that this debt is secured by 5 billion tokens $WLFI .
Why is this dangerous?
Collateral in the form of WLFI is rapidly depreciating. If the price drops even further, the Health Factor of the position on Dolomite will approach a critical level. A cascading liquidation of 5 billion tokens in the current market state could become a "death spiral" for the asset.
Summary for traders:
The team claims to have control over the situation, but the numbers on the chart indicate panic. The "printing" of new USD1 helped unlock liquidity for others, but did not save the capitalization of WLFI.
⚠️ Be cautious with longs. As long as the price does not consolidate above the resistance zone, the risk of forced liquidation remains the main driver.
What do you think: $0.0767 — is this the "bottom" or will we see further collapse? 👇
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