FLOKI investors are experiencing a rollercoaster ride this week. After a stellar run that saw profits surge by 80%, the memecoin’s price took a tumble, dropping over 5% in the last 24 hours. While some analysts remain optimistic, the recent dip has raised concerns about a potential trend reversal.
Bullish Breakout Followed by Bearish Signal
Just a few weeks ago, FLOKI broke out of a bullish pattern, much to the delight of investors. This breakout signaled a potential price increase, and FLOKI delivered, rewarding holders with significant gains. However, popular crypto analyst World Of Charts recently highlighted a shift in the market sentiment. Their tweet pointed out that FLOKI’s price has dipped after its mid-May breakout, potentially indicating a bearish turn.
Despite the recent correction, data from IntoTheBlock reveals that a positive sentiment persists. A whopping 99% of FLOKI investors are currently “in the money,” meaning their holdings are profitable. This positive sentiment is further reinforced by Santiment’s data, which show continued high weighted sentiment around the memecoin. Additionally, FLOKI’s social volume has increased, reflecting its ongoing popularity.
On-Chain Metrics Hint at Potential Reversal
While the price action might suggest a bearish turn, several on-chain metrics paint a different picture. The MVRV ratio remains positive, and the NVT ratio has dipped significantly. A drop in NVT often suggests an undervalued asset, potentially hinting at a future price rise. Furthermore, FLOKI’s network growth has also increased, indicating new user interest in the token.
Technical Indicators Offer Conflicting Signals
A look at FLOKI’s daily chart reveals conflicting technical signals. The MACD indicator suggests a bullish market advantage, and the price is trading above the 20-day SMA. However, the Chaikin Money Flow (CMF) has turned bearish, indicating a potential shift in momentum.
Also Read: Floki Flies High with $12 Million DWF Labs Investment: Is This the End of Meme Coin Stigma?
If the price continues to decline, FLOKI might test the support level around $0.00025. This is because liquidation is expected to rise sharply at that price point. Conversely, a bullish reversal could see FLOKI climb to $0.00036 soon.
The Verdict: Uncertain Future for FLOKI
FLOKI’s future trajectory remains uncertain. While the recent price drop and bearish technical indicators raise concerns, positive on-chain metrics and continued investor sentiment suggest a potential rebound. Only time will tell if FLOKI will continue its upward trend or succumb to the selling pressure.
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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