- FLOKI is facing strong resistance at $0.00017480, despite rising volume and bullish momentum
- Slight hike in daily active addresses and a potential short squeeze could fuel a breakout
As a seasoned crypto investor with memories of the 2017 bull run still vividly etched in my mind, I find myself intrigued by FLOKI’s current standoff at the $0.00017480 resistance level. The altcoin has shown promising signs of life, with rising volumes and a potential short squeeze brewing, but it remains to be seen if it can muster the strength to break through this stubborn barrier.
Due to a strong increase in value recently, Floki Inu (FLOKI) has been gaining noticeable interest from both individual and institutional investors. As its price continues to rise, it’s currently trading at $0.0001504 – an uptick of 6.62% over the past day.
Furthermore, I observed a significant increase of 19.81% in the 24-hour trading volume, suggesting heightened trader activity.
Nevertheless, while FLOKI is experiencing a favorable trend, it encounters a significant hurdle at the $0.00017480 barrier. Will it manage to surpass this level and keep climbing, or will it pull back again as it did during its past attempts?
FLOKI chart overview – Pressure mounts at the resistance
The daily chart showed the memecoin testing the $0.00017480 resistance level, a key barrier it has failed to overcome in previous rallies. The Bollinger Bands have been tightening around the price, indicating reduced volatility, while the Relative Strength Index (RSI) sat at 56.88.
Therefore, FLOKI still has some room to move before reaching overbought conditions.
To overcome this resistance point, the memecoin requires significant increase in purchasing power. This could trigger a surge, and if the current technical signs are correct, it might lead to a breakout. However, for this to happen, the volume of transactions should also keep climbing.
FLOKI daily active addresses – Is interest returning?
It’s worth noting that FLOKI saw a small rise in daily active users, going from 3,560 to 3,653. This suggests a minimal boost in user interaction. However, this figure is significantly lower than the highs reached earlier this year when active addresses soared above 10,000.
As an analyst, I observe that the recent surge in activity is indeed encouraging; however, it’s evident that for FLOKI to maintain substantial price fluctuations, we require a more robust involvement from retail investors.
Additionally, the ongoing engagement might not be enough to break the resistance level.
FLOKI liquidations – Short squeeze on the horizon?
In the last 24 hours, short liquidations for the memecoin amounted to $48,280, while long liquidations were only $18,210. This indicates that bearish traders might soon have to exit their positions, potentially leading to increased upward pressure on FLOKI’s price.
Moreover, should FLOKI successfully breach the resistance, it may trigger a possible short squeeze that could amplify its upward trend.
Long/short ratio – Are the bears in control?
At the moment, the balance between bullish and bearish investors, as represented by the long/short ratio, is almost even, with a value of 0.9952. This suggests that both groups are closely matched in their positions. However, it appears that short sellers currently hold a slight advantage, accounting for about 50.12% of all trades, indicating some level of caution or apprehension among traders.
If the memecoin doesn’t manage to surpass its resistance level, it might lead to bears taking over again promptly. However, if the memecoin successfully breaks out of this resistance, it may compel the bears to close their positions.
Realistic or not, here’s FLOKI’s market cap in BTC’s terms
Ultimately, FLOKI’s future depends on whether it can break through the $0.00017480 resistance.
As trading volumes grow and more positions are being closed (short liquidations), there’s a sense of optimism. However, relatively low daily trader activity brings up some questions. If buyers can maintain their momentum, FLOKI could potentially move upward.
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2024-10-19 11:04