- Bearish sentiment around FLOKI was dominant in the market.
- Indicators hinted at a trend reversal soon.
A day has passed since Floki Inu [FLOKI] broke above a bullish flag pattern that hinted at a massive bull rally. However, things were not going as planned for the meme coin, as its daily chart turned red.
Does this mean a further price correction is on the way?
FLOKI’s latest setback
AMBCrypto reported earlier how FLOKI managed to break above a bullish flag pattern after consolidating inside it since March.
A breakout above the bullish flag pattern suggested that FLOKI’s price might soon touch its March high again.
However, there was a twist, as FLOKI’s price turned bearish.
According to CoinMarketCap, the meme coin’s price dropped by more than 1% in the last 24 hours. At the time of writing, it was trading at $0.0001917 with a market capitalization of over $1.84 billion.
The negative price action stirred up bearish sentiment in the market, as evident from its low Weighted Sentiment. Its Social Volume also dropped, reflecting a decline in the meme coin’s popularity.
Source: Santiment
A possible reason for the price drop could be a rise in selling pressure. AMBCrypto’s analysis of Santiment’s data revealed that active deposits increased, as did its deposit transactions.
Its exchange inflow also spiked, suggesting that investors were selling.
Source: Santiment
Investors must remain patient
Though the negative price action was a setback, the trend might not last. FLOKI’s trading volume dropped along with its price, which suggested that the downtrend might be short-term.
Additionally, FLOKI’s might just be testing its support at the upper trendline of the bull flag pattern before it launches upward again.
Most indicators also supported the possibility of a price uptick in the coming days. For instance, the MACD displayed a bullish upperhand.
The Relative Strength Index (RSI) registered an uptick, indicating that the bulls might soon push the meme coin’s price up.
Moreover, FLOKI’s price was still resting above its 20-day Exponential Moving Average (EMA), which can be inferred as a bullish signal. But the Chaikin Money Flow (CMF) looked bearish as it went down.
Source: TradingView
Read Floki Inu’s [FLOKI] Price Prediction 2024-25
AMBCrypto then checked Hyblock Capital’s data to look for possible support and resistance levels for the meme coin.
We found that FLOKI faces strong resistance near $0.20, as liquidation would rise sharply at that level. A rise in liquidation often causes slight price corrections.
Going southwards, FLOKI might witness support near $0.19. A plummet under that could result in FLOKI dropping to $0.15.
Source: Hyblock Capital
