FLOKI [FLOKI] has experienced a significant 58% decline from its peak in early January, reaching $0.000201. The selling pressure, as indicated by the A/D indicator, has been consistent throughout the price drop, hindering any swift rebound.
Over the past 48 hours, the alternative coin market has witnessed a decrease of 27.5% in its market capitalization, although a marginal recovery has been observed from recent lows.
Is FLOKI Likely to Stabilize around $0.000083?
This meme-based coin has not managed to revisit its previous highs from March and has retreated from the resistance level of $0.00028 that was seen in December. In a sudden plunge, the token slipped below the lows of early August.
The subsequent support level lies at $0.00005375, approximately 35% lower than the current market value. The A/D indicator has indicated a consistent strong selling pressure over the past few months, suggesting that any recovery from the recent setbacks is unlikely to be immediate.
The 20 and 50-period moving averages are acting as dynamic barriers above, reinforcing the bearish trend of FLOKI. The most recent lower high was recorded at $0.000135, a level almost 62% higher than the current price.
The long-term outlook remains strongly bearish. With minimal buying interest, FLOKI may undergo a period of consolidation at its current low levels, or possibly even lower, before any attempted recovery.
Based on the 24-hour liquidation heatmap, the key overhead magnetic zones are at $0.0001 and $0.000117; however, they are significantly distant from the current price levels.
Traders should anticipate a consolidation phase around $0.000077 and $0.000083, and potentially further declines if Bitcoin [BTC] fails to maintain the $92k support level.
According to the 24-hour liquidation map, there is higher liquidity in short liquidations, indicating a greater likelihood of short-term upward movement.
It is possible that the $0.000086 threshold might be tested before another downward trend materializes.
Given the prevailing market sentiment of extreme fear, additional losses cannot be disregarded. Prospective investors might opt to wait a few days to gain clarity before making any investment decisions.
Disclaimer: The content above is the writer’s personal opinion and should not be considered as financial, investment, trading, or any other form of advice.