Why FLOKI traders can expect a ‘bullish price reaction’ from this demand zone
The early March high that FLOKI retested recently was also the 78.6% retracement level of the rally in February, March 2024.
- FLOKI retested its early March highs, but was unable to break out
- Mean coin age metric showed network-wide accumulation in 2025
In a recent analysis, it was revealed that FLOKI could see a 40% drawdown on the charts. In fact, the memecoin has already lost 20.9% of its value from the high it saw on 30 April at $0.0000949.
At press time, FLOKI seemed to be on its way to test a bullish breaker block as support. This demand zone was 7% below the market price at press time.
The wider memecoin market has shed $5 billion in market capitalization over the past ten days.
The daily trading volume also fell by over 20% in the same window. Hence, FLOKI is not alone in enduring the bearish sentiment.
Long-term FLOKI investors could look to add more to their bags
The on-chain metrics might offer some hope to investors. At the time of writing, while the price action highlighted a potential range formation, the mean coin age (180 days) was on a steady uptrend in 2025. This could be a sign that longer-term holders have not been moving their FLOKI much. In turn, this could also be a bullish finding, as it signaled HODLer behavior and bullish faith.
Meanwhile, the daily active addresses metric and the transaction volume were both relatively low, compared to the levels they reached in November and December 2024. The transaction count saw an uptick over the past two weeks, accompanied by short-term holders selling as the price jumped 64% from 18 April to 30 April.
The 1-day price action chart revealed the lengthy consolidation phase that FLOKI has witnessed since March. It challenged the same high from early March, but was unable to break beyond this resistance.
Interestingly, this level was the 78.6% Fibonacci retracement level, plotted based on the rally in February and March 2024. The fact that FLOKI has retraced all of the past year’s gains is not a good sign for investors.
After a year where Bitcoin [BTC] went from $50k to touch $108k, FLOKI rallied 1,163%, only to then retrace almost 80% of those gains. This could give investors pause, despite the persuasive arguments from the price chart and the metrics.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
