World Liberty Financial (WLFI) Buys the Dip, Investing $100K in SEI Tokens

The price of SEI cryptocurrency has jumped 7.3% following news that World Liberty Financial (WLFI), a DeFi venture backed by Donald Trump

The price of SEI cryptocurrency has risen 7.3% following news that World Liberty Financial (WLFI), a DeFi venture backed by Donald Trump, has purchased 541,242 SEI tokens.

The acquisition, valued at $100,000 USDC, came at an average price of $0.185 per token and has helped push SEI closer to the $0.20 mark. This purchase occurs as SEI was testing a key demand zone around $0.18, which marked its lowest level since November 2023. The token had been trading in a descending structure for several months before this recent uptick in buying interest.

The investment has sparked fresh market activity for SEI. Daily trading volume increased by 17% to more than $127 million, showing renewed interest in the token. This surge in trading happened during a week when much of the broader crypto market faced corrections.

WLFI now holds approximately 1.089 million SEI tokens in total. The project has spent a combined $225,000 on these acquisitions. However, due to recent market movements, the current value of their SEI holdings has dipped slightly to $207,000.

Technical Analysis Shows Potential Breakout

A glance at the technical analysis shows the token positioning for a potential short-term breakout from its descending triangle pattern on hourly charts. If SEI can close above the $0.20-$0.22 range, this could confirm the start of a recovery wave.

The Elliott Wave count suggests SEI may be completing a corrective phase. The structure aligns with an extended W-X-Y-Z pattern, with wave Z potentially marking the cycle low at around $0.18. This region also corresponds with a key horizontal demand zone.

Key Levels To Watch:

▪ Resistance: $0.2035 (immediate), $0.22 (wave target), $0.25 (structural breakout)

▪ Support: $0.175, $0.15 (pivotal)

If the price breaks below the critical support at $0.15, it could invalidate the bullish outlook.

Trump’s Portfolio Suffers Losses As World Liberty Buys More Crypto

This investment comes at a time when the Trump portfolio, which holds nine different crypto tokens valued at around $340 million, is currently sitting on a cumulative loss of approximately $124 million due to recent market fluctuations.

The portfolio, which is being managed by the DeFi project World Liberty Financial (WLFI), has seen a significant decline in value since its inception in February 2024.

The primary contributors to these losses are substantial investments made by WLFI in major cryptocurrencies such as Ethereum and Move, which have experienced steeper-than-expected price corrections.

Despite the portfolio's overall status, WLFI has been on a crypto buying spree, acquiring various altcoins and investing in projects related to the Sui blockchain.

Since late February, the project has invested $21.6 million in various cryptocurrencies, including SEI, to which it allocated a smaller portion of its funds.

Just last week, the DeFi project invested $10 million each in Ethereum and Wrapped Bitcoin. These moves come as part of a broader strategy to build a diverse crypto portfolio.

In February, WLFI unveiled its new Macro Strategy Reserve initiative. This strategic move aims to strengthen its position in the cryptocurrency sector by diversifying holdings across various digital assets.

The reserve's focus is on spreading investments to reduce the impact of market volatility. This approach seeks to ensure long-term stability and sustainability for the platform as the crypto landscape continues to evolve.

The venture also announced a partnership with Sui to explore development opportunities and build a strategic SUI reserve.

Evang Cheng, a founding contributor to Sui, expressed optimism about the partnership, highlighting the potential for combining Sui's advanced technology with WLFI's vision to transform how assets are stored and used globally.

The partnership aims to integrate the strengths of both projects, leading to innovative solutions in the DeFi space.

As for SEI, the Fib retracement levels show $0.32 as a major resistance, which is the 0.786 Fib. This will likely act as the ceiling for any relief rally in the near term.

The RSI has been in oversold territory, which suggests selling exhaustion. A bullish divergence on the RSI could signal a shift in the prevailing trend.

For SEI to confirm a trend reversal, it needs to break above the descending trendline that has been guiding the price lower for months. In the one-hour timeframe, the structure suggests the early stages of an impulsive recovery may be forming.