FLOKI: Key factors favoring the bears as the memecoin sinks lower
Steady selling volume and bearish market sentiment meant FLOKI remained in a firm downtrend.
- The market structure of FLOKI on the daily and the 4-hour charts were bearish.
- Further losses were anticipated as momentum and volume also favored the sellers.
Floki [FLOKI] has fallen 31.6% below the lows from November. The entire memecoin sector has seen large losses.
In the past month, the sector was down by 41.5%. FLOKI’s losses have not yet halted, and the price has slipped below the 78.6% Fibonacci retracement level based on the rally from March 2024.
At present, the swing low from the 3rd of February was the short-term target due to the prevalent trend. How much lower can the meme coin go?
FLOKI channel could give traders opportunities
The OBV has been in a downtrend since November. However, it climbed higher in February, but the downtrend was still in play as it had not made a new higher high in 2025.
This corresponded with the price action, which has maintained a bearish structure since December.
The RSI on the daily chart has also been bearish since mid-December. A bullish divergence was not yet at play, and FLOKI was likely to head toward the February lows at $0.0000713 once again.
The 4-hour chart showed that a bearish structure was in play once again. After a few days of defending the $0.000086 level as support, it had sunk lower in the final week of February.
This was followed by a retest of $0.000086, the former local support, as resistance.
Thereafter, a descending channel was formed. A set of lower highs and lower lows have formed, and the mid-channel level has served as support over the past week as well.
The H4 chart showed that the OBV has been in a steady downtrend, showing persistent selling volume. The RSI was also below neutral 50 and the bears were dominant.
Traders could use the descending channel to sell FLOKI. As highlighted on the higher timeframe charts, the next support levels were at $0.0000713 and $0.00005375 levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
