- After recording a notable rally in the past day, FLOKI has hit a major resistance level that could force it lower.
- Selling pressure has been growing simultaneously, threatening the asset’s potential upward move.
Floki [FLOKI] ended up among the top gainers in the market over the past 24 hours, following an impressive 12% performance—an extension of its 45% gain over the past week.
The market sentiment, which has remained bullish, might soon shift, particularly following new developments on the chart and among derivative traders.
Roadblock ahead for FLOKI
FLOKI has hit a major roadblock as the price traded into a key resistance zone on the chart at press time, beginning at 0.00008878 and extending to 0.00010097.
The effect of this resistance pushed the price lower, as evidenced by a red candlestick forming on the chart.
Source: TradingView
According to analysis, FLOKI could see a major decline toward the support level marked at 0.00006096, potentially followed by a rebound.
However, if buying momentum is maintained, the asset could continue its upward trajectory, trending into and possibly breaching the resistance zone.
Current market momentum and price waves suggest that continuation of the uptrend is unlikely, as selling pressure mounts.
Selling pressure continues to mount
AMBCrypto’s analysis of exchange netflow data showed that selling pressure continued to grow in the spot market.
Spot traders have sold a total of $1.96 million worth of FLOKI in the past 48 hours, marking five consecutive days of sustained selling.
Source: CoinGlass
Exchange netflow uses token inflow and outflow to determine whether spot traders are buying or selling.
A similar sentiment is reflected in the derivatives market. The ongoing rally lacks sufficient momentum, with derivatives volume dropping to $55 million.
Source: CoinGlass
The long-to-short ratio—a metric used to determine whether buying or selling volume dominates—showed that sellers were in control. The ratio of 0.9654 confirmed that there was more selling than buying in the market.
Sustained selling in the derivatives market added to spot market pressure, which could force FLOKI lower toward its target support at 0.00006096.
FLOKI suffers low liquidity
Amid bearish sentiment in both spot and derivatives markets, FLOKI also suffers from low liquidity, as shown by recent liquidation data.
Typically, liquidation data shows the amount lost by different trader cohorts—long and short—within a given period. Low liquidation figures often suggest low liquidity in the market.
In FLOKI’s case, total liquidations amounted to $114,050 in the past 24 hours, with long traders taking the largest hit at $77,440—representing 67.89% of the total losses.
This low liquidity signals a lack of interest among market participants. With long traders taking the brunt of the losses, it is likely that the market continues to move lower, in line with bearish projections.
