- A bearish rounded top pattern appeared on FLOKI’s four-hour chart.
- The RSI also showed that after intense selling activity, FLOKI could become oversold.
As a seasoned crypto investor with scars from numerous market battles etched onto my digital trading portfolio, I find myself standing before FLOKI [FLOKI] at a crossroads. The bearish rounded top pattern on its four-hour chart and the oversold RSI are reminiscent of a familiar dance – one that has led to many a heartache in the past.
Due to a downturn in the crypto market, FLOKI’s price has fallen to $0.000227, representing a decrease of 4.8% over the past 24 hours.
FLOKI has also been down by 9% in the last seven days amid intense selling.
As a crypto investor, I’ve noticed that the memecoin might see a potential decline following the emergence of a rounded top pattern on its four-hour chart. This pattern suggests that the bullish momentum is waning, and the selling pressure could be increasing.
In simpler terms, the Relative Strength Index (RSI) showed a significant increase in selling pressure following a continuous drop. At present, the RSI stands at 38, implying that the memecoin might be nearing an oversold state.
The Awesome Oscillator(AO) also highlighted the strengths of the bears. The red AO bars were negative and growing in size, an indication that the downtrend is gaining strength.
If the negative trends continue for FLOKI, it’s probable that the price could fall to retest support at approximately $0.00017 – a level determined by the 1.618 Fibonacci ratio. At this point, a rounded top pattern may become apparent, and a drop below this support might intensify the downward trend by establishing a neckline for the formation.
If FLOKI is to surge beyond its current bearish trend, it must surpass the resistance level at $0.00024. This upward movement, combined with increased trading activity, could potentially fuel further price increases.
On-chain data shows mixed signals
As a crypto investor, I noticed some concerning trends in Floki’s on-chain data, as highlighted by IntoTheBlock. Specifically, the net network growth seems to be decreasing, suggesting a reduction in the number of active addresses transacting with the token, which could potentially indicate a decline in interest or adoption.
As a crypto investor, observing a decrease in profit-taking addresses is another red flag for me, hinting at a pessimistic market mood. It implies that many investors are selling their gains or even cutting losses, which could be a sign of an ongoing bear trend.
Conversely, the small increase in whale activity might indicate a positive trend if these big investors are accumulating.
Over the past two days, there’s been a significant surge in high-value transactions involving FLOKI. Specifically, these transactions exceeding $100,000 have jumped from an initial number to 241 billion, marking a staggering 173% rise within a single day.
Analyzing FLOKI’s derivatives data
It seems that the derivatives market is indicating pessimism among aggressive investors, as trading volumes decreased by 3% within a day and Open Interest (OI) declined by 11%, reaching $29 million.
This drop suggested that traders were closing their positions on FLOKI.
Realistic or not, here’s FLOKI’s market cap in BTC’s terms
Furthermore, the Long/Short Ratio decreased to approximately 0.85, indicating that there are a slightly higher number of short trades with leverage compared to long trades.
A spike in long liquidations might have influenced the demand for short positions.
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2024-11-26 18:15