At the latest update, Floki [FLOKI] was priced at $0.00013, having gained 7% in the last 24 hours. Trading volumes also saw a significant surge, reaching $369M, signaling increased interest among traders.
Despite the recent gains, various indicators, such as whale activity and technical analyses, hint at a potential shift in momentum towards bearish territory.
Impact of Whale Selling on Bearish Trends
Recent data from IntoTheBlock has revealed a notable increase in whale activity surrounding FLOKI. Large transactions skyrocketed by over 3,000% within 24 hours to 50.5 billion FLOKI currently.
However, a substantial portion of this activity seems to be skewed towards selling. The netflows of large holders turned negative, dropping from 21.39 billion to -8.42 billion, suggesting significant selling pressure.
This downward trend indicates that whale accounts have sold off nearly 30 billion tokens in a span of two days. Given that these whales hold 72% of FLOKI’s supply, such selling behavior could lead to increased market volatility.
Observing the Death Cross on FLOKI’s Chart
On the daily chart of this memecoin, a death cross has emerged, hinting at a continuation of bearish momentum. The 50-day Exponential Moving Average (EMA) has crossed below the 200-day EMA—a bearish signal that may spur further downtrends.
The Relative Strength Index (RSI) has indicated a surge in selling pressure, dropping to 32. Its ongoing trend below the signal line underscores the prevalence of strong bearish sentiments in the market.
Should the current bearish trend persist, FLOKI could face a potential 54% decline towards the support level at the 1.618 Fibonacci level ($0.000059).
Presently, FLOKI is challenging the resistance at the 0.786 Fibonacci level ($0.000135). If this level is breached with robust buying activity, the next price target would be $0.000206.
Assessment of Long/Short Ratio, Showing Bullish Leanings
The Long/Short Ratio for FLOKI has exhibited a notable uptick in long positions, indicating a prevailing bullish sentiment among traders foreseeing potential gains. Over the last four days, this ratio has steadily climbed from 0.61 to 1.03.
While an increase in long positions generally signals positivity, an unexpected downturn could trigger liquidations and intensify selling pressures. Such market movements might lead to increased negative outcomes.
However, a sustained positive market sentiment could draw in more buyers to FLOKI, fostering an upward price trend.