Analyzing FLOKI’s recovery odds after memecoin’s price drops to 3-week-low
The post Analyzing FLOKI’s recovery odds after memecoin’s price drops to 3-week-low appeared on BitcoinEthereumNews.com.
FLOKI has dropped to a three-week low amid bearish pressures across the memecoin market Derivative traders have remained active, with declining funding rates and long/short ratio showing a surge in short positions The total memecoin market capitalization dropped by 17% over the past week alone, with the same hitting $94 billion as per CoinMarketCap. FLOKI, the sixth-largest memecoin by market cap, has mirrored these bearish trends given that at press time, it was trading at a three-week low of $0.000155 after a 5% drop in 24 hours. This drop has stirred a spike in activity across both the spot and derivative markets, which could precede a hike in volatility. Derivative traders remain active Data from Coinglass revealed that derivatives trading activity around FLOKI remains significantly high, despite the bearish trend. In fact, Open Interest (OI) has risen to $28M from $21M when the year began. This data suggested that few traders are closing their open positions on FLOKI. However, it could also indicate an influx of short traders in the market, which often leads to negative market sentiment. (Source: Coinglass) Funding rates have also dropped significantly to 0.0028%, indicating that long traders are unwilling to pay high fees to maintain their open positions. FLOKI price analysis as sellers fuel the downtrend At press time, FLOKI’s four-hour chart hinted that the memecoin may be oversold after the Money Flow Index (MFI) hit 21. This drop could precede a reversal if sellers are exhausted. Source: TradingView However, a bullish reversal may not happen soon after the 50-day Simple Moving Average (SMA) moves below the 150-day SMA. This bearish crossover indicated that FLOKI has entered a long-term downtrend. The surging selling activity has also seen FLOKI make a bearish breakout from its consolidation range. Hence, traders should watch out for the support level…
Filed under: News - @ January 14, 2025 12:26 am