Key Takeaways:
ALT5 Sigma moved 1.815 billion WLFI tokens worth $99.77 million to a new address as unrealized losses on its holdings hit $853.24 million.
According to on-chain tracker Onchain Lens, the transfer did not go to an exchange, pointing to an internal reorganization rather than a sale. ALT5 Sigma still holds 7.28 billion WLFI and has not sold any tokens.
Two wallets hold 6.9 billion WLFI worth $384 million against a $1.24 billion cost basis, leaving $853.24 million in unrealized losses. To stay afloat, ALT5 Sigma has reportedly borrowed funds from World Liberty Financial.
WLFI rose 2.85% to $0.0557, flipping its simple moving average at $0.0559 after rebounding from a $0.053 low. Derivatives volume climbed 16% to $50.36 million and open interest rose 3.2% to $227.6 million, but spot sellers still dominate with a buy-sell delta of negative $3.38 million.
ALT5 Sigma began accumulating WLFI in August 2025, announcing plans to raise $750 million to buy the token before expanding the strategy to $1.5 billion and making it the primary Treasury reserve asset. The exposure has since become a drag on the firm's balance sheet.
The transfer of 1.815 billion tokens leaves the main wallet with 5.09 billion WLFI worth $283.5 million. Because the destination was not an exchange, the move is likely a custody or treasury reorganization rather than a liquidation.
The token's rebound has been driven largely by speculative traders. Derivatives volume rose 16% to $50.36 million while open interest climbed 3.2% to $227.6 million, according to Coinglass. The relative strength index formed a bullish crossover to 46, suggesting buyers are attempting to retake control.
If the RSI flips above 50, WLFI could extend toward $0.06. But on the spot market, sellers have dominated for five straight days. Over the past 24 hours, selling volume reached 15.98 million versus 12.6 million in buying, pushing the buy-sell delta to negative $3.38 million, per Coinalyze.
If spot selling persists, WLFI risks breaching its simple moving average and sliding back to $0.053.
The divergence between derivatives demand and spot pressure leaves WLFI vulnerable to a pullback even as leveraged traders pile in. A sustained break below $0.053 would deepen ALT5 Sigma's already-heavy unrealized losses and raise fresh questions about the firm's ability to service the debt it has taken on from World Liberty Financial.
This article is for informational purposes only and does not constitute investment advice.
