Floki (FLOKI), the popular memecoin, continues to wrestle with bearish pressure as the token extends its downtrend, declining by 10.99% in the past 24 hours. This drop adds to last month’s steep 30.90% plunge, keeping overall market sentiment subdued. However, technical indicators suggest a potential reversal may be on the horizon.
Currently, FLOKI is trading at the lower end of the Bollinger Bands (BB), a key indicator used to detect trend reversals and volatility. Historically, contact with the lower BB often precedes an upward correction. If the bounce gains momentum, FLOKI could rise as much as 48% toward the upper band at $0.00007227 — though strong resistance is expected at that level.
Fueling this short-term bullish outlook is the Relative Strength Index (RSI), which has rebounded just before dipping into the oversold region. A continued upward movement in RSI would indicate strengthening buying momentum.
However, the broader picture is mixed. The Money Flow Index (MFI), which tracks capital inflow and outflow, shows a significant liquidity exit in the past 24 hours. According to Coinglass, spot market netflows show only $263,000 worth of FLOKI was sold — suggesting a lack of panic selling and hinting at profit-taking or loss-cutting by short-term holders.
Meanwhile, optimism is building in the Futures market. OKX Exchange data reveals a long-to-short ratio of 1.69, indicating that traders are increasingly betting on a price recovery. Additionally, FLOKI’s funding rate — which recently moved from -0.0518% to -0.0271% — is edging closer to positive territory, a signal that long positions are gaining favor.
While short-term volatility remains, the alignment of key indicators like Bollinger Bands, RSI, and funding rates may pave the way for a bullish breakout. Should buying pressure persist in the derivatives market, FLOKI could defy bearish odds and post a strong rebound in the coming days.
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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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
