- The bearish sentiment around FLOKI dominated the market.
- The indicators pointed to a soon change in trend.
It’s been a day since Floki Inu [FLOKI] It broke above a bullish flag pattern that was hinting at a massive bullish rally. However, things did not go as planned for the meme coin as its daily chart turned red.
Does this mean that a new price correction is coming?
FLOKI’s latest setback
AMBCrypto reported Previously, FLOKI managed to break out of a bullish flag pattern after consolidating within it since March.
A break above the bullish flag pattern suggested that FLOKI price could soon reach its March high again.
However, there was a turnaround, as FLOKI price turned bearish.
According CoinMarketCapThe price of the meme coin fell by more than 1% in the last 24 hours. At the time of writing, it was trading at $0.0001917 with a market cap of over $1.84 billion.
The negative price action sparked bearish sentiment in the market, as evident from its low weighted sentiment. Its social volume also fell, reflecting a decline in the popularity of the meme coin.
A possible reason for the price drop could be an increase in selling pressure. AMBCrypto analysis of Santiment data revealed that active deposits increased, as did its deposit transactions.
Its foreign exchange inflow also soared, suggesting investors were selling.
Investors must be patient
Although the negative price action was a setback, the trend may not last. FLOKI’s trading volume fell along with its price, which suggested that the downtrend could be short-term.
Additionally, FLOKI could be testing its support at the upper trendline of the bullish flag pattern before it breaks out again.
Most indicators also supported the possibility of a price rally in the coming days. For example, the MACD showed a bullish advantage.
The Relative Strength Index (RSI) recorded a rally, indicating that the bulls could soon push up the price of the meme coin.
Furthermore, FLOKI price was still above its 20-day exponential moving average (EMA), which can be inferred as a bullish signal. But Chaikin Money Flow (CMF) looked bearish as it fell.
Read Floki Inu [FLOKI] Price prediction 2024-25
AMBCrypto then checked Hyblock Capital data to look for possible support and resistance levels for the meme coin.
We find that FLOKI faces strong resistance near $0.20 as the liquidation would increase sharply at that level. An increase in liquidation often causes slight price corrections.
Towards the south, FLOKI could witness support near $0.19. A drop below that could cause FLOKI to fall to $0.15.
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This is an automatic translation of our English version.
