- A bearish rounded top pattern appeared on FLOKI’s four-hour chart, indicating potential further downside
- On-chain data showed mixed signals, with a decline in net network growth and addresses in the money, but a spike in whale transactions over $100,000
- In the derivatives market, volumes dropped 3% as Open Interest fell 11%, suggesting traders were closing their positions on FLOKI
FLOKI has seen its price decline significantly in recent days amid overall weakness in the crypto market. The memecoin could be poised for further losses in the near term based on technical and on-chain analysis.
Bearish Chart Pattern and Indicators
A rounded top pattern has formed on FLOKI’s 4-hour chart, signaling bullish exhaustion and rising selling pressure. The RSI shows oversold conditions after a steady decline, while the Awesome Oscillator highlights growing bearish momentum.
If bearish signals continue, FLOKI will likely test support around $0.00017. A drop below this level would confirm the bearish pattern and accelerate the downtrend. For a bullish breakout, FLOKI needs to overcome resistance at $0.00024 on high volume.
Mixed On-Chain Signals
According to IntoTheBlock, some on-chain metrics for FLOKI are bearish while others show potential for a recovery. The decline in addresses interacting with FLOKI and addresses in profit point to negative sentiment.
However, a slight increase in large transactions over $100k could signal accumulation by whales. This divergence between metrics makes the on-chain picture unclear.
Speculators Are Bearish
The derivatives market shows traders closing out positions and leaning bearish on FLOKI. Volumes and open interest have declined significantly. The long/short ratio below 1 suggests more leveraged shorts than longs, likely due to a spike in long liquidations.
Overall, the technical and on-chain outlook is bearish for FLOKI in the short term. However, signs of whale accumulation could support a reversal if buyers step in at key support levels.
