FLOKI faces key hurdle: What’s next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- FLOKI reversed losses made since mid-August.
- Bearish sentiment prevailed despite bullish BTC.
Second-tier meme coins outperformed their legacy counterparts during the recent market recovery. In particular, Floki [FLOKI] and Pepe [PEPE] posted double-digit gains of 37% and 12% respectively over the past week.
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A recent report established that FLOKI’s popularity and daily activity outpaced major meme coins and could partly explain the impressive price performance. However, the rally faced headwinds.
FLOKI faced an overhead hurdle of $0.00003 on the weekly chart
The move above $0.000025 tipped FLOKI to reverse losses made since mid-August. Notably, the $0.000025 level was an invalidated bearish order block (OB) on the 12-hour chart. At press time, the level had been retested as support and was a critical bullish interest level.
However, price action faced an overhead hurdle at $0.00003 – a weekly bearish OB formed on 22 May 2023. The higher timeframe roadblock could prove sticky to further bullish prospects unless Bitcoin [BTC] swings to $37k.
Conversely, sellers’ market edge could increase if FLOKI slipped below support of $0.000025. Southwards, the next support existed at $0.00001988.
Meanwhile, FLOKI’s Spot market demand and buying pressure favored bulls, as the OBV and RSI upticks showed. But lack of substantial capital inflows was a worrying trend as CMF faltered near zero.
Bearish sentiment hit the rally
The negative Open Interest (OI)-Weighted Funding Rate meant that bearish sentiment gripped FLOKI’s market as investors had second thoughts on the asset.
A dip in Santiment’s Weighted Sentiment metric confirmed the waning positive sentiment. In addition, the Network Growth dropped sharply and indicated a decline in FLOKI’s traction.
How much are 1,10,100 FLOKIs worth today?
Despite some bearish readings, FLOKI recorded a steady accumulation phase since September, as indicated by the rising 90-day Mean Coin Age.
So, buyers can mark the $0.000025 as a crucial interest level if BTC remains bullish.