- FLOKI could see a 25% recovery if market sentiment improves
- This recovery could be thwarted if whales sell off their holdings
Among the top Mimecoins on the market, FLOKI INU It showed the least price relief in the last 24 hours. FLOKI rose by 1.5%. Pepe and Dog Whip Hat (WIF)but Bonk and Dogecoin (DOGE) They rose 6% and 4% respectively.
This suggests that if the relief rally continues into the new week, Mimecoin may not rally equally. But what does this mean for FLOKI?
Can FLOKI reverse its recent 20% loss?
Source: FLOKI/USDT, TradingView
FLOKI lost more than 20% of its value between July 22 and July 25, falling from $0.0002 to $0.00016. However, the memecoin has found stability near key support levels and may attempt to reverse its losses.
The Fibonacci correction tool (yellow) is positioned between the June high and the April low. According to this tool, last week’s decline was relieved near the 78.6% Fibonacci level ($0.00016) and the 20-day SMA (simple moving average).
By defending the 20-day SMA, Mimecoin looks ready to move higher and reverse last week’s losses. If so, a potential gain of 25% could be realized if the price hits the next immediate target at the 61.8% Fibonacci level. A strong bounce to the 50% Fibonacci level would see a recovery gain of 40%.
Additionally, key price chart technical indicators supported the aforementioned recovery outlook. FLOKI capital inflows were stagnant, but above average as shown by Chaikin Money Flow (CMF).
However, the RSI (Relative Strength Index) shows that demand has remained stagnant as of the time of writing.
That is, the demand dynamics in the spot market may change as the outstanding interest rates (OIs) surge over the past 24 hours.
According to Coinglass: dataLiquidity surged on Sunday for Mimecoin, while FLOKI also saw significant market interest, meaning the derivatives market was bullish on FLOKI as well.
Will the whales abandon FLOKI?
Source: Santiment
Despite the bullish setup of FLOKI, the potential for a recovery could result in massive profit generation. According to Santiment, three categories of FLOKI whales, including those holding more than 1 million FLOKI, are dumping Mimecoin.
read FLOKI INNU (FLOKI) Price Prediction 2024-2025
This could weigh on the recovery and drag down FLOKI, especially if market sentiment is not favorable after the Fed’s rate decision this week.
In short, FLOKI looks like it has upside potential and has a 20% gain at stake. However, the whale’s unloading could threaten the recovery prospects.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.