- Bearish sentiment around FLOKI was dominant in the market.
Indicators hinted at a trend reversal soon.
As a crypto investor with some experience in the market, I’m keeping a close eye on Floki Inu (FLOKI). The dominant bearish sentiment around the meme coin was disrupted when it broke above a bullish flag pattern last week, indicating a potential massive bull rally. However, things took an unexpected turn as FLOKI’s price dropped by over 1% in the last 24 hours, and its daily chart turned red once again.
As an analyst, I’ve observed that a day has elapsed since Floki Inu (FLOKI) surpassed a bullish flag pattern on its daily chart, which was indicative of a substantial upward trend. However, unexpectedly, the coin’s daily chart switched to red instead.
Does this mean a further price correction is on the way?
FLOKI’s latest setback
As a crypto investor, I’ve been keeping an eye on FLOKI‘s price action according to the latest report by AMBCrypto. The cryptocurrency formed a bullish flag pattern back in March and has since then been consolidating within it. However, I’m excited to share that FLOKI has recently managed to break above this pattern, signaling a potential continuation of its upward trend.
The bullish flag pattern’s breakout indicates a strong likelihood that FLOKI‘s price will reach its previous March high once more.
However, there was a twist, as FLOKI’s price turned bearish.
Based on CoinMarketCap’s data, the price of the meme coin decreased by approximately 1.1% in the past 24 hours. Currently, it is being sold at the price of $0.0001917 and possesses a market capitalization exceeding $1.84 billion.
The downward trend in prices sparked pessimism among investors, as indicated by the market’s subdued Weighted Sentiment. Additionally, the Social Volume took a nose dive, signaling waning interest in the meme coin.
As a researcher investigating potential reasons for a recent price drop, I’ve discovered that an uptick in selling pressure could be a plausible explanation. After examining the data from AMBCrypto and Santiment, I noticed an increase in both active deposits and deposit transactions. This suggests that a larger number of investors may have been offloading their cryptocurrency holdings, leading to a surge in supply and downward pressure on prices.
Its exchange inflow also spiked, suggesting that investors were selling.
Investors must remain patient
Despite the disappointing price decline and decreased trading volume for FLOKI, it’s possible that this is just a temporary downturn in the market trend.
As a market analyst, I would interpret FLOKI‘s current price action differently. It’s plausible that FLOKI is merely probing the resistance level of the bull flag pattern prior to continuing its uptrend.
Many signs pointed towards an potential increase in price in the near future. For example, the Moving Average Convergence Divergence (MACD) line showed a bullish trend.
As a crypto investor, I’ve noticed an encouraging sign while monitoring the meme coin’s market trends: The Relative Strength Index (RSI) has recently spiked up. This could be a hint that the bullish momentum is building and might soon propel the coin’s price upward.
Additionally, FLOKI‘s cost remained above its 20-day Exponential Moving Average (EMA), signaling a bullish trend. However, the Chaikin Money Flow (CMF) displayed bearish signs with a decline in value.
Read Floki Inu’s [FLOKI] Price Prediction 2024-25
After examining the data from Hyblock Capital provided by AMBCrypto, potential levels of support and resistance for the meme coin were sought.
I’ve analyzed the price trend of FLOKI and discovered that there’s significant resistance around the $0.20 mark. When the price reaches this level, liquidation becomes a major concern, causing a substantial increase. Such an increase in liquidation typically results in slight corrections in the price.
As a crypto investor, I would say: Heading downward, if FLOKI reaches the price mark of around $0.19, it may encounter support there. However, should it fall beneath this level, we could see FLOKI touching $0.15.
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2024-05-07 02:15