- FLOKI’s open interest has risen to a one-month high
Negative CMF trailing the memecoin hinted at the possibility of a price decline on the charts
As an experienced financial analyst, I’ve seen my fair share of market trends and patterns. The recent surge in open interest for Floki Inu (FLOKI) is noteworthy, indicating increased participation from traders and investors. However, this bullish sign is not without its challenges.
As a researcher studying the cryptocurrency market, I’ve noticed an intriguing development regarding the dog-themed memecoin, FLOKI or Floki Inu. The futures open interest for this coin has recently reached a 30-day peak, according to Coinglass’ data. At present, the recorded figures stand at $19 million. This represents an impressive increase of over 111% since the beginning of May.
The open interest of FLOKI‘s Futures contracts represents the quantity of agreements between traders that have not been settled or liquidated. An uptick in open interest suggests a growing number of market players engaging in fresh trades.
FLOKI and its growing “demand”
As of the current moment, the value of FLOKI was estimated at $0.0002123 based on market charts. Over the past week, there was a nearly 20% surge in its price, making it one of the most profitable investments as per CoinMarketCap’s latest rankings.
On May 15th, there was a significant increase in the daily trading volume for FLOKI during the hike, reaching approximately $1.06 billion as reported by Santiment. This figure marked the token’s highest trading activity since March 28th.
As an analyst, I’ve noticed an upward trend in the demand for FLOKI. Its technical indicators have gained momentum, with both the Relative Strength Index (RSI) and Money Flow Index (MFI) moving above their neutral thresholds. Specifically, at the current moment, the RSI stands at 62.68, while the MFI reads a value of 65.37.
Look before you leap
Although FLOKI‘s price has recently surged and efforts have been made for it to exceed the upper boundary of its upward trendline, the bearish forces remain strong and dominant.
During the specified timeframe, the Chaikin Money Flow (CMF) of the token indicated a continuous outflow of money from the asset, as evidenced by its consistently negative value. This indicator signifies the difference between the accumulation and distribution lines, with a negative CMF suggesting that more money is leaving the asset than entering it. The price increase while the CMF was declining formed a negative divergence.
As a researcher examining market trends, I’ve noticed an intriguing discrepancy: while the asset’s price is inching upward, the buying pressure seems to be waning. This observation implies that short-term speculation might have been the primary force behind the recent price surge, rather than robust fundamentals or enduring investor interest.
At press time, FLOKI’s CMF was below zero at -0.11.
Since the start of May, the daily funding rate for the token on cryptocurrency exchanges has fluctuated between being positive and negative.
The price of FLOKI‘s perpetual swap contracts has oscillated near their underlying spot price, indicating market uncertainty about the asset’s future value.
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2024-05-18 08:07