Floki-Inu

Floki Inu’s Recent Surge: Whale Activity and Technical Indicators Signal Potential Bearish Trends

Floki Inu (FLOKI), a prominent memecoin, has recently experienced notable market activity, with its price trading at $0.00013, reflecting a 7% increase over the past 24 hours. This surge has been accompanied by a significant rise in trading volumes, which have escalated by 93% to $369 million, indicating heightened interest among traders.

Despite these short-term gains, several indicators suggest that bearish trends may be on the horizon. Data from IntoTheBlock reveals a substantial uptick in whale activity, with large transactions increasing by over 3,000% in just 24 hours, totaling 50.5 billion FLOKI tokens. However, this surge is largely attributed to selling activity, as evidenced by the negative netflows of large holders, which have shifted from 21.39 billion to -8.42 billion. This indicates that whale addresses have offloaded nearly 30 billion tokens within two days, a development that could introduce volatility into the market.

Source: IntoTheBlock

Technical analysis further underscores potential bearish momentum. A death cross has appeared on FLOKI’s daily chart, where the 50-day Exponential Moving Average (EMA) converges with the 200-day EMA. Such a crossover below the longer-term moving average is typically interpreted as a signal of a continuing downtrend. Additionally, the Relative Strength Index (RSI) has declined to 32, remaining below the signal line, which suggests prevailing bearish conditions.

Source: TradingView

If this downward pressure persists, FLOKI could experience a 54% decline, potentially reaching the support level at the 1.618 Fibonacci retracement level, approximately $0.000059. Currently, FLOKI is testing resistance at the 0.786 Fibonacci level, around $0.000135. A successful breach of this resistance, accompanied by substantial buying volumes, could propel the price toward the next target of $0.000206.

Also Read: Floki Inu (FLOKI) Breaks Out with 120% Price Surge Target After Coinbase Listing: Is $0.000546 Next?

Investor sentiment appears to be cautiously optimistic. The Long/Short Ratio for FLOKI has increased from 0.61 to 1.03 over the past four days, indicating a growing bullish bias among traders. However, this surge in long positions could lead to increased selling pressure if the market experiences an unexpected downturn, potentially triggering long liquidations. Therefore, while the market sentiment remains positive, it is crucial for investors to monitor these developments closely to navigate the inherent volatility of the cryptocurrency market.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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