As of the current moment, FLOKI has shown a 2.37% increase for the day, while Bitcoin [BTC] made attempts to surpass the $97k level. During the past two days, both Bitcoin and FLOKI displayed some short-term bullish tendencies.
Despite the recent positive momentum, concerns arose due to FLOKI’s failure to break its March high and the subsequent downtrend in June, prompting worries of a potential repeat scenario.
FLOKI’s Market Momentum and Decreased Demand
Between August and November, FLOKI was confined within a price range (white) spanning from $0.000111 to $0.000165. Interestingly, the midpoint of this range coincided with the 78.6% retracement level at $0.000138.
The breakout from this range on November 10th was supported by significant trading volume, propelling the price to a peak of $0.00029 by November 21st. However, a subsequent decline followed this surge.
This dip was coupled with reduced trading volume and buying pressure. The daily timeframe’s Chaikin Money Flow (CMF) indicator exhibited a consistent decline over the past week, settling at +0.01, indicating neutral capital flow.
Furthermore, the Awesome Oscillator reflected bearish momentum through red bars on its histogram in recent days, signaling FLOKI’s retracement after its recent upswing.
Potential Deeper Retracement Indicated by Liquidation Map
An analysis of FLOKI’s 1-month liquidation map identified significant long and short position liquidations in close proximity at the $0.000225 and $0.000219 levels.
Of note, the $0.219 level showed a relatively high aggregate long liquidation leverage, potentially acting as a price attractor. Conversely, the cumulative short liquidation leverage was lower to the north, but the $0.000248-$0.00025 range might witness a brief bearish reversal.
Disclaimer: The views expressed in this analysis are personal opinions and do not constitute financial advice, investment recommendations, or trading suggestions.