Despite an attempt by FLOKI bulls to breach the $0.000176 resistance zone, they fell short, unable to surpass the $0.00016 mark as anticipated.
Recent market trends have shown a significant outflow of capital, with the CMF dropping below -0.05 and the RSI signaling bearish territory on the 4-hour chart, suggesting further losses for this memecoin.
Assessing On-Chain Metrics in Light of Bearish Signals
An unexpected surge in dormant circulation on August 29 indicated increased token movements for potential selling purposes, coinciding with a price decline from $0.000157 to $0.000135.
Short-term MVRV turned negative, reflecting a slight loss for holders as selling pressure intensified. Additionally, the average dollar invested age decreased, suggesting older coins re-entering circulation, hinting at a chance for FLOKI to recover post-reset, although current buying pressure favors bears.
Shift in FLOKI Sentiment Post-Retreat
While FLOKI witnessed a surge in daily active addresses during a period of short-term gains in late August, indicating increased usage and potential demand, sentiment reversed as bearish tones dominated the market, impacting participant activity.
Although the uptick in network growth remained unaffected, a spike in Open Interest post-reversal hinted at significant short-selling activity despite the token’s retraction.
Subsequent declines in Open Interest reflected prevailing bearish sentiment, with metrics and indicators skewing in favor of sellers in the short run, with a slight positive noted in the reduction of the mean dollar invested age.