- FLOKI token’s value decreased by over 5% in the last 24 hours.
- Several metrics are indicating a possible trend reversal.
- A bullish breakout pattern emerged a few weeks ago, leading to considerable profits for investors.
Discover how the recent bearish trends and potential for a bullish reversal are affecting the FLOKI token’s market performance.
Recent Gains for FLOKI Investors
A notable cryptocurrency analyst, World Of Charts, recently highlighted how FLOKI’s performance has trended upward since its bullish breakout in mid-May. Prior to this, the memecoin’s price was consolidating within a specific range for several weeks.
Since this breakout, FLOKI saw an impressive 80% profit, greatly benefiting most of its investors. Data from IntoTheBlock corroborates that 99% of these investors were enjoying profitable portfolios.
Despite the recent success, a bearish turn occurred in the past 24 hours, with the token’s price dropping by over 5%, as reported by CoinMarketCap. Currently, FLOKI is trading at $0.0003104 and holds a market capitalization exceeding $2.96 billion, positioning it as the 40th largest cryptocurrency.
Assessing the Bearish Trend’s Longevity
COINOTAG’s analysis of Santiment’s data shows that despite the recent downturn, the weighted sentiment for FLOKI remains high, signaling continued bullish sentiment in the market. Moreover, social volume for the token has also risen, further indicating its growing popularity.
Interestingly, several on-chain metrics suggest a potential for a trend reversal. For example, FLOKI’s MVRV ratio remains positive, and its NVT ratio has dropped significantly. A lower NVT ratio often points to an asset being undervalued, potentially forecasting a price increase soon.
Additionally, the memecoin experienced an increase in network growth last week, with more new addresses being created for transferring the token.
Technical analysis of FLOKI’s daily chart reveals a bullish inclination in the market with the MACD indicator favoring the bulls. However, while the Bollinger Bands suggest the price is comfortably above its 20-day SMA, the Chaikin Money Flow (CMF) has recently turned south, indicating bearishness in the short term.
If the bearish trend holds, FLOKI’s price could drop to $0.00025 where a significant increase in liquidation might occur. Conversely, if the memecoin gains bullish momentum, its price could reach $0.00036.
Conclusion
To summarize, while FLOKI has shown significant gains following its bullish breakout, recent bearish trends raise questions about its short-term future. Nevertheless, positive on-chain metrics and strong market sentiment hint at a possible trend reversal soon. Investors should keep a close watch on both technical indicators and market sentiment to navigate these volatile times effectively.
