WLFI Price Forecast: Can Justin Sun’s Token Freeze Stop 90% Crash?

WLFI’s price surged 12.5% in a sharp rebound from $0.161 after whispers spread that World Liberty Financial may have locked Tron Founder Justin Sun—one of its biggest backers—out of his own tokens.

What’s Exactly Happening Between World Liberty Financial and Justin Sun?

On Thursday, World Liberty Financial blacklisted a wallet linked to Justin Sun, blocking transfers of around 595 million unlocked WLFI at that address, onchain data shows.

The move came shortly after outbound transactions, including one worth about $9 million.

Sun said the activity was only small “exchange deposit tests,” denied any selling, and then called on WLFI to unlock his tokens, arguing that freezing investor assets violates principles of fairness and transparency.

To the World Liberty Financials team and the global community,

As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…

— H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) September 5, 2025

But market observers noted that Sun was attempting to dump his WLFI stash on retail.

That includes analyst Star Platinum, who noted Sun’s frozen WLFI address had been used in crosschain loops to move funds between Ethereum and BSC, borrowing stablecoins and selling them repeatedly.

“Sun controls an ecosystem worth $38 billion, with HTX exchange handling 17% of all global trading volume,” the analyst argues, adding:

“This gives him a single point of failure for many markets.”

According to Platinum, WLFI’s launch already showed red flags like inflated funding rates, heavy stablecoin bridging, and wash-trading.

He argues the freeze only delays Sun’s usual playbook of pumping liquidity with fake volume and dumping on retail, a pattern that history shows repeats whenever Sun promises not to sell.

Can WLFI Rebound Further?

The negative buzz around WLFI, coupled with accusations of insider selling by retail traders, could keep the token’s rates suppressed.

As FxEmpire covered earlier, the World Liberty Financials is also mimicking the 90% crash witnessed in another Trump family token—the Official Trump (TRUMP) memecoin—that may curb investors’ appetite further.

The fundamental outlook seems to support the technical data so far.

As of Friday, WLFI was struggling to close above its 20-H exponential moving average (20-H EMA; the green wave) near $0.184.

Persistent pressure from this interim resistance increases the odds of WLFI dropping toward its $0.161 local low, almost aligning with the 1.618 Fibonacci retracement line.

A close above the 20-H EMA, on the other hand, could send the price toward the 1.00 Fib line near $0.200, almost around the 50-H EMA (the red wave) this week. Traders need more confirmation from the fundamentals and technicals before putting any further bullish bets above $0.200.