After experiencing a strong rally in the initial weeks of November, FLOKI [FLOKI] now finds itself in a consolidation phase that has left many wondering about the reasons behind this stagnation.
Despite the overall bullish sentiment in the market, FLOKI has struggled to reach new highs for the year, dampening some of the optimism surrounding this meme coin.
Since November 5th, FLOKI has managed to increase by 97%, although this growth pales in comparison to the gains seen in other cryptocurrencies like Dogecoin [DOGE] and Pepe [PEPE], which have surged by 164% over the past month.
Transformation of Resistance Zone into Demand Zone Over Five Months
Investors holding FLOKI may be slightly disappointed by its failure to achieve new yearly highs, especially when compared to its counterparts in the market.
One positive development, however, is the successful flip of the $0.000205 level into a demand zone, marking a crucial point that corresponds to the 50% Fibonacci retracement level from the March rally.
The daily Awesome Oscillator indicates a bullish momentum, despite a 20% pullback from recent highs, while the A/D indicator is experiencing a pullback, although it remains on an upward trajectory in the long term.
Examining the 4-hour chart reveals a consolidation pattern, with the $0.000226 level now acting as support. However, the A/D indicator reflects a lack of buying pressure, signaling potential weakness in the market.
Furthermore, the Awesome Oscillator on the H4 timeframe suggests a mild bearish momentum.
Indicators Pointing Towards Distribution
The 30-day MVRV ratio, which peaked in mid-November following FLOKI’s rapid gains, has since cooled down as the cryptocurrency entered a consolidation phase within the established range.
Notably, bearish signals are emerging in the short term as the mean coin age dropped suddenly on November 28th, coupled with spikes in the age consumed metric, indicating increased selling pressure from holders.
Disclaimer: The views expressed in this article are personal opinions and should not be construed as financial, investment, or trading advice.