Floki (FLOKI) has experienced a substantial decline, dropping 9.94% in the last 24 hours. As new technical developments emerge and prevailing data suggests a bearish sentiment, the memecoin appears poised for further downward movement. However, it's essential to note that the current downturn is not entirely confirmed, leaving the door open for a potential rally.
The recent price action of FLOKI reflects a classic bearish pattern characterized by a sharp drop followed by a consolidation phase. During this phase, prices typically fluctuate within a narrow range before a decisive downward break. This pattern often occurs after the price hits a major resistance line and subsequently breaches support levels.
As of now, FLOKI is trending toward the support region of its price channel. Should it break below this level, two critical targets will be in focus. The first is the bottom of the channel, currently positioned at 0.00009585. If the bearish trend continues and replicates previous significant downward moves, FLOKI could potentially plummet further to around 0.00005373.
Despite the bearish outlook, there are indicators that suggest a possible halt in FLOKI's downward trend. Recent data from Coinglass reveals a noteworthy outflow of FLOKI, particularly from Binance, which recorded an outflow of $2.06 million within the last 24 hours. This trend of negative net flows has persisted throughout the past week.
Typically, such a negative net flow can lead to a supply squeeze, where the limited availability of FLOKI may drive demand higher. If demand increases amidst dwindling supply, it could potentially push the price up, creating a countertrend rally.
In summary, while Floki (FLOKI) is currently facing a significant decline and bearish outlook, the possibility of a rally remains. Traders and investors should monitor key support levels and outflow trends closely. As the cryptocurrency market remains volatile, understanding these dynamics will be crucial in making informed decisions moving forward.
October 2024, Cryptoniteuae