The Open Interest (OI) in Floki [FLOKI] derivative products has escalated by 11.56%, now standing at $15.51 million, demonstrating a rising market interest. Additionally, the trading volume has soared by 61.18%, hitting $40.90 million, indicating a surge in trading activities.
These optimistic signals imply that FLOKI is attracting the interest of market players.
Nevertheless, the question remains whether the token can sustain this positive momentum against market resistance.
FLOKI trade statistics: Noteworthy increase in substantial transactions
FLOKI has witnessed a significant rise in transactions across various trade sizes. Minor transactions in the $0-$1 bracket have surged by 60%. Transactions within the $100k-$1m bracket have witnessed an impressive spike of 150%.
This surge in substantial trades indicates a growing involvement of institutional investors and affluent individuals. Nonetheless, the category of transactions exceeding $1m has not displayed notable activity.
This indicates that while market interest in FLOKI within the mid-range is expanding, significant players may be biding their time before joining in.
Decrease in network expansion: What does this signify for FLOKI?
Despite the escalating trading volumes, FLOKI’s network expansion has experienced a recent downturn. The count of new addresses entering the network has markedly decreased, with only 67 new addresses added currently.
This decrease in network growth raises concerns regarding the long-term viability of the market.
Hence, it is crucial to ponder whether the token can sustain interest without a widening user base. This slowdown might indicate that the token’s growth could hit a plateau unless new approaches are employed to attract more participants.
Chart summary: Descending wedge pattern and possible breakout
FLOKI is presently consolidating within a descending wedge pattern, typically indicating a potential breakout. The chart indicates that the price has been fluctuating within a defined range and is nearing crucial support levels.
Currently, the token is valued at $0.00009357, displaying a slight decline of 0.80% over the past 24 hours.
Consequently, traders are likely to anticipate a breakout above resistance levels in the upcoming days, which could propel the price upwards.
Total liquidations: Long positions surpass shorts
The Total Liquidation Chart unveils an ongoing trend where long positions are being liquidated more frequently than short positions. Presently, the total for long liquidations is $1.81K compared to $1.29K for short liquidations.
This suggests that traders are maintaining long positions in expectation of further price hikes. However, this could indicate a risky scenario if the price exhibits continued weakness.
FLOKI’s momentum likely to encounter obstacles
The derivatives market of FLOKI is displaying positive growth with increasing volume, OI, and substantial transactions.
Nonetheless, the decline in network growth and the trend of long liquidations indicate that FLOKI’s price might face challenges in maintaining this momentum.
Hence, while the token may break out of the descending wedge, the overall market sentiment remains mixed.