- FLOKI could see a 25% recovery rebound if market sentiment improves
Whales dumping their holdings could derail this recovery
As a seasoned crypto investor with years of experience under my belt, I have witnessed numerous market fluctuations and trends, especially within the memecoin sector. FLOKI‘s recent performance is of particular interest to me given its potential for growth and the current market conditions.
In the top memecoin market, Floki Inu (FLOKI) experienced the smallest price increase over the last 24 hours with a gain of only 1.5%. In contrast, PEPE and dogwifhat (WIF) also saw modest growth of the same magnitude. On the other hand, BONK and Dogecoin (DOGE) surged, recording impressive rallies of 6% and 4%, respectively.
The implication is that if the current market rally persists into another week, memecoins like FLOKI may not all experience equal gains.
Can FLOKI reverse its recent 20% losses?
Between July 22nd and 25th, the value of FLOKI dropped by more than 20%, going from $0.0002 down to $0.00016. Despite this significant loss, the memecoin has found support at a crucial level and may try to regain some of its value.
A Fibonacci retracement line (marked in yellow) was drawn connecting the price levels from June’s highs and April’s lows. According to this tool, the recent price decrease came close to hitting the 78.6% Fibonacci ratio ($0.00016) as well as the 20-day Simple Moving Average.
The memecoin appeared ready for an uptrend as it held its ground at the 20-day Simple Moving Average (SMA), potentially leading to a 25% increase in value if it reached the next Fibonacci level at 61.8%. A robust recovery to the 50% Fib level could even yield over 40% in gains.
Furthermore, the technical indicators on FLOKI‘s price chart provided backing for the anticipated recuperation perspective. The Capital Money Flow (CMF) indicator indicated that while inflows into FLOKI were stationary, they remained above average.
However, the RSI (Relative Strength Index) revealed that the demand was flat as of press time.
Based on my extensive experience in financial markets, I have observed that sudden increases in open interest rates (OI) within a day can significantly impact the demand dynamics on the spot market. This phenomenon has been a consistent trend throughout my career, and it’s essential to pay close attention when such events occur. The surge in OI could potentially lead to increased volatility or even price movements that go against the prevailing market sentiment. Therefore, traders and investors must remain agile and adapt their strategies accordingly to mitigate potential risks or capitalize on these market shifts.
According to Coinglass statistics, there was a surge in liquidity for meme coins, including FLOKI, on Sunday. This increase in market activity was noticeable for FLOKI as well. Consequently, the derivatives market showed a bullish sentiment towards FLOKI.
Are some whales dumping FLOKI?
Despite the potential optimistic outlook for FLOKI, significant gains could be achieved during its predicted recovery. As reported by Santiment, there are three distinct groups of major FLOKI investors, with those holding over 1 million FLOKI being particularly active in selling the memecoin.
Read Floki Inu [FLOKI] Price Prediction 2024-2025
The upcoming event could add stress to FLOKI‘s healing process, potentially worsening its condition if the Federal Reserve’s rate decision this week does not align with positive market sentiments.
Simply put, FLOKI appeared to hold promising possibilities with a potential 20% increase. Yet, the actions of large investors selling off their holdings could jeopardize its chances for a successful recovery.
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2024-07-28 05:03