FLOKI price has been in a steady downtrend for a long time, but further losses are likely in the coming days.
As pessimism grows among investors, attempts to stabilize meme coins could be undermined.
FLOKI sees bearish signal
FLOKI price may fall as a result of broad market signals and investors backing off. The same signs are also seen in Open Interest and Relative Strength Index (RSI).
FLOKI’s open interest experienced a sharp decline, dropping by $4 million in just one day. This decline represents a significant decline, equivalent to a fifth of the previous total of $20 million. This significant drop in open interest highlights a change in market sentiment.
The sharp decline in FLOKI’s open interest suggests that traders and investors are reassessing their positions. A 20% drop in open interest often indicates speculative activity and a decline in confidence, which can have broader implications for the asset’s market dynamics.
Also, FLOKI’s RSI failed to break above the neutral line. RSI is an important momentum indicator, and its inability to break above this level is a clear sign that bearish sentiment continues to dominate. This suggests that the market is struggling to gain upward momentum.
The significant decline in open interest combined with the bearish RSI highlights that FLOKI is currently struggling to reverse the trend.
Read more: What is a meme coin?
All these indicators suggest that bearish signals are dominating the market, and FLOKI is likely to continue to face downward pressure in the short term.
FLOKI Price Forecast: Key Levels Observed
The FLOKI price has dropped by more than 21% in the last 24 hours, taking the meme coin from $0.0001856 to $0.0001459. The altcoin is now approaching the last barrier at $0.0001326 and is on the decline, which could lead to a free fall if the price drops below $0.0001000.
The aforementioned signals are also not very positive, suggesting that a downturn could occur soon.
Read more: 7 Popular Meme Coins and Altcoins That Will Trend in 2024
On the other hand, if the FLOKI price bounces from $0.0001484, the bearish theory may be invalidated. This will provide enough momentum to the meme coin to recover $0.0001856 as a support level and eventually break $0.0002000.
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